Public Groupactive 1 year, 4 months ago
ICS Tax, LLC is pleased to announce its new Northeast Ohio office. The office is located at 3401 Enterprise Parkway, Suite 340 in Beachwood, Ohio, which is a premier eastside suburb of Cleveland. The Northeast Ohio office is led by Alexander Bagne, who is both a CPA and a licensed attorney with over 17 years of tax planning experience. With its Twin Cities headquarters office in Minneapolis, Minnesota and its Tristate office in New York, New York, ICS Tax provides tax consulting services nationwide.
The strategies that ICS Tax provides are usually outside the capabilities and expertise of most CPA firms. Many require the use of engineers or other special credentials. ICS Tax collaborates with taxpayers and their tax professionals to identify credits and incentives that reduce tax liabilities and increase profitability.
A valuable tax planning strategy offered by ICS Tax is Cost Segregation, a study that accelerates the timing of depreciation deductions for buildings. Residential buildings are typically depreciated over a lengthy 27.5 years and commercial buildings are depreciated even longer over 39 years. A Cost Segregation study applies the tax code and case law to identify and separate personal property and land improvements, which are depreciated more rapidly over 5, 7, or 15 years.
Beyond cost segregation, ICS Tax also offers a Comprehensive Fixed Asset Review, which looks at all tangible property to identify individual assets that are inappropriately being depreciated, expenditures that have been capitalized but are repair and maintenance expenses, retired assets still on the depreciation schedule, and many other opportunities to accelerate depreciation. A fixed asset review increases cash flow and provides tremendous value to taxpayers.
Another b0uilding-related tax incentive is the §179D Tax Deduction (Energy Efficient Commercial Building Deduction, which is often referred to as the EP Act Deduction after the Energy Policy Act of 2005. The §179D Deduction allows taxpayers to claim an immediate deduction of up to $1.80 per square foot for energy efficiency improvements to interior lighting, HVAC and hot water systems, and the building envelope. The §179D Deduction applies to both new construction and renovation projects. Since public entities pay no Federal income tax, a special rule allows architects, engineers, contractors, and other building professionals to take this valuable incentive.
The §45L Tax Credit (Energy Efficient Home Credit) is similar to §179D, but applies to residential properties. The §45L tax incentive provides a $2,000 tax credit per residential unit that meets certain the energy efficiency requirements. The §45L Credit applies to both single family homes as well as low-rise multifamily residential housing, and it applies to both new construction as well as substantial renovations.
The R&D tax credit under §41 provides an incentive for companies to invest in innovation within the United States. This valuable tax credit is available to companies in numerous industries that develop new or improved products or processes. The R&D credit is available for certain wages, supplies, and third-party contract research expenditures associated with qualifying research activities. The R&D tax credithas recently been expanded to allow more taxpayers to benefit, including those in an AMT position as well as startup businesses that are not yet paying Federal income tax, as the credit can be applied to payroll taxes.
For more information or assistance about these tax planning ideas, please call Alex Bagne at 216-870-0742 or visit ics-tax.com.