Thursday, February 15, 2018

How is the WOTC Tax Credit claimed?

WOTC is a general business credit and can offset federal income taxes and can be carried back to the prior year or carried forward 20 years. This program falls under the Worker’s Opportunity Tax Credit (WOTC), and is a Federal tax credit available to all employers who hire and retain qualified individuals. Employers currently claim about $1 billion in credits each year under the WOTC program. The average credit per qualified employee is $2,400 and can be as much as $9,600.

Taxable Employers
After an employee has been qualified and the certification secured, a taxable employer may claim the tax credit as a general business credit against their income tax using IRS form 3800.

Sole Proprietorship, S-Corp, LLC, LLP or Partnership
The credit passes to the owner, shareholder, member or partner in the same manner as losses are allocated. 

The credits are used by the corporation. 

Tax-exempt Employers
Employers who are qualified as tax exempt as described in IRC Section 501(c) and exempt from taxation under IRC Section 501(a), may only claim the WOTC for qualified veterans and may not claim for other target groups.  

After an employee has been qualified and the certification secured, tax exempt employers may claim the credit against the employer social security tax using IRS Form 5884-C.  Form 5884-C 'Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans' is filed after filing the related employment tax return for the employment tax period for which the credit is being claimed. 

See what your total WOTC would be after answering 2 basic questions at

Friday, February 9, 2018

Benefit Loss Imminent

This is the year to consider cost segregation for your property.  I'm not sure if you have been following the tax code changes but I would seriously consider moving on this quickly if I were you.   
A cost segregation filed with your 2017 taxes is worth 40% more than one filed next year.   

The value of your depreciation as a whole just took a huge hit with this tax change, and this is the last year you're allowed to do a "catch up" and reclaim all that money.

You did those buildings during years where tax rates where at their highest, and depreciated things under the assumption that you'd get those deductions "over time".   Now, due to the tax changes you still get some of your money, but it's at 21% instead of 35% (therefore, your overall deduction is worth 40% less next year than it is this year).

We're slammed with new clients because of the news and tax deadlines looming, but I wanted reach out to you.   We'd need to get started soon in order to meet your deadline.  What are a few times this week we could connect?

Thank You,
Larry G. Potter

Friday, February 2, 2018

70-80 Billion Being Lost by B2Bs that they are not aware of!

And this includes eCommerce companies too. (Online retailers / Phone / Internet / Catalog Orders )

Note: B2B includes, but not limited to:

• Law firms focusing on corporate litigation and transactions
• Corporate accounting firms
                               • Manufacturers
                               • Distributors

I’m excited to tell you more about a credit card monitoring service. Let me tell you up front, they are not a merchant processor and they will never ask you to switch processors or equipment.

No benefits = No fees.

Most B2Bs get a ton of calls from companies trying to switch and save regarding your merchant account. Again, this company is NOT here to switch your processor. In fact their service is designed to keep you with your current processor.

• They have saved companies over $100 million in fees! Companies like Adidas, Yankee Candle, Office Depot and many more, all across America, large and small.

• You are probably not aware, but there are over 1000 different charges that make up the fees on your merchant statement.

• On average this company saves their clients 21% off of their merchant service fees and again, they reduce your fees without switching processors.

• In fact, they find savings 100% of the time, which means every month you’ve been overpaying on interchange fees. Wouldn’t you like to find out how much they can save you?

Clients never billed unless they experience a savings.

Their process is simple. All they need is your last six months of statements and in three business days you’ll receive a free report just that will outline an 11 point audit and provides you the transparency into all the hidden fees and surcharges.

Their expertise and experience coupled with their thorough expense reduction process, ensures a competitive advantage over other firms in your industry.

They correct the processing plan to reflect the most competitive plan type and rate, using formulated, specific asks of the existing provider. Their team then works with the you to further reduce the nonnegotiable fees through processing optimization, where they can help qualify payment transactions at lower interchange rates by passing through additional processing data.

Contingency based billing - no other fees.

For More Info

Wednesday, January 31, 2018

Last Minute Changes for Tax Season Webinar Monday February 5th

VIP webinars provide the opportunity to share important information affecting you!  Next Monday we will be discussing last minute changes that have a tremendous impact on your tax season this year.  
We have also invited a Special Guest Speaker to join us. He is a service expert in both the R&D and Cost Segregation fields and we're looking forward to hearing his take on the changes and the effect they will have on you as well as your clients.
Please set aside time to join us on Monday, February 5th at 3pm EST. We'd like you to extend this invite to your contacts as well.
  • Find out why 2018 will be the Biggest Tax Season EVER
  •  Important talking points you need to know when speaking to a CPA & your Clients
  •  Service Expert Guest Speaker in R&D and Cost Segregation
  • Register Now For a Broader Overview 

Tuesday, January 30, 2018

How many times do you contact a client after they ask for more information?

A potential client asks for more detailed information on you services, you e-mail it to them and they don't respond or even say "thank you". Do you send them other another email? No answer. Do you send them a 3rd email? And still no answer. Do you phone? Or do you let it go after first email?

Monday, January 29, 2018

Virtually All Employers in The USA Qualify for Employer Based Tax Incentives

The Financial Meltdown in the mid 2000's brought about a renewed focus on Job Creation. With this we saw massive expansion of Federal Tax Incentives for creating, and maintaining jobs. This was done through the Small Business Jobs Act, The American Recovery and Reinvestment Act, Numerous Job Creation and Protection Acts, and most notable the PATH Act signed by President Obama for effective changes in 2016 through 2022.
How Do Businesses Get Qualified For These Additional Employer Tax Credits?
They take a short 5-minute survey that only asks 8 questions. This covers services of WOTC, R&D, Property Tax, and Cost Segregation.
No upfront fees. We use our time and money to search out the savings, then the client decides to move ahead or not.
The pattern in the last decade is that with the passing of each Act, more and more companies are eligible for Employee based Tax Incentives that broaden not only WOTC itself, but hundreds of programs that surround it and we keep ahead of the curve.
Virtually any business can now benefit from Employer Based Tax Incentives because even candidates that don't qualify for WOTC often qualify for other tax incentives.

Wednesday, January 24, 2018

Cost Segregation and Depreciation Recapture

Depreciation recapture is an often misunderstood aspect of tax planning and comes into effect only during the sale of a property. 
Recapture is limited to the lesser of the gain or the depreciation taken. Meaning, first you have to sell the property and have a gain on the sale to even be concerned. 
To have a loss, one would have to sell the property for less than its net tax value. For practical purposes, the depreciation taken is the main limiting factor because the IRS calculates gain as the selling price less the net tax value (cost less depreciation taken). The recapture rules dictate how the gain is taxed, with § 1245 governing personal property and § 1250 governing real property. Section 1245 dictates that the accelerated depreciation taken on personal and real property be taxed at ordinary income tax rates. Section 1250 requires that depreciation taken on real property be taxed at a 25% capital gains rate. Any gain in excess of the total depreciation is taxed at the normal capital gains rate, but this does not wholly dictate whether recapture eliminates a need to do a cost segregation study. This is illustrated in the example below.
Assuming your client has sold or is going to sell their building, let us use the facts below to show the benefit of a cost segregation study.
• Property purchased 6/1/2005
• Cost = $5,000,000 with a breakdown of:
» 5 - year – $1,000,000
» 15 - year – $750,000
» 39 - year – $3,250,000
• Selling price of $10,000,000
• Effective tax rate of 40% (Fed. & State)
• Interest rate of 6%
Using these assumptions, we can calculate the benefit on the sale derived from the cost segregation study taking the accelerated depreciation now vs. depreciating the building at a 39-year life.
Keep in mind that depreciation recapture occurs only to when the sales price is allocated to a specific item in an amount sufficient to produce a gain. Therefore it is essential that the selling price allocation be as part of an appraisal. When a building is sold, for purposes of calculating the gain on the sale, the sale price should be allocated to the specific items based on their fair market value at the time of the sale. While conventional wisdom might suggest that appreciation of real estate generally occurs due to economic appreciation on land, and inflation on the cost of materials and labor, other factors such as income stream and goodwill are often taken into consideration when appraising the property. According to the IRS, the fair market value is not determined by the net tax value but by an appraisal that assigns the fair market value to the property. The IRS will respect a purchase and sale agreement (P&S) in an arm’s length transaction. If a seller allocates the selling price in a P&S to the assets class by class and this is accepted by the purchaser, it will be considered binding on both parties by the IRS – so much so that you cannot do a cost segregation study in this case.
One more point, when a C Corporation sells real property prior to the end of its full recovery period, part of the time value benefit is also lost. However, because all income is taxed at the same rate in the “C” corporation, recapture is a non-issue.
The bottom line is that recapture depreciation does not automatically negate the gain from a cost segregation study. We are not denying that a Cost Segregation Study will produce additional recapture tax, but when you compare the benefit of the accelerated depreciation from a Cost Segregation Study, it usually exceeds the increased tax. 
No Upfront Fee for Cost Segregation: