Entity Selection
An effective tax strategy begins before your business exists. Your choice of business entity will affect your tax liability and is therefore an important part of your company’s overall tax strategy. By consulting with the Diligentiam tax team and forming a tax strategy at the inception of your business, you will be positioned for success from the start.
For parent or holding companies, this strategy can lead to multiple business entities with different fiscal year ending dates. This, too, can be part of an overall strategy to allot your tax liability throughout the fiscal year. It is just one example of the way in which our team works with you to clearly identify any and all specific needs your business may have.
Maximizing Your Deductions
The experienced business professional knows that maximizing deductions reduces a company’s overall tax liabilities. But there are many different ways to accomplish this goal, and not all of them will suit your needs. We can help you explore the possibilities.
Cost segregation studies can help us access the benefits of component depreciation. By itemizing and reclassifying your business assets, we can maximize the depreciation with which you are credited. This allows your business to offset tax liability of your assets with their depreciation in a shorter amount of time.
Depreciation is not, of course, without its risk. By carefully assessing your depreciation options, our professionals can use depreciation in a strategic manner to serve your overall tax strategy most efficiently.
Maximizing Your Tax Credits
Tax credits are highly mercurial. Every year, credits come and go and change form. The Diligentiam tax team has the experience necessary to understand tax credits and we stay up to date on their frequent changes. We believe that businesses of every size should have access to all tax credits that are available to them.
Research and development is a costly operation for many businesses. There are also a variety of tax credits which these same businesses can access to offset these costs.
Tax credits for energy-efficient upgrades and technologies are among the most mercurial. As technologies change and improve, the available credits also change. Our tax professionals stay up to date with the many available energy tax credits to find those that will most benefit your business.
Implementing Best Practices for Accounting
Efficient accounting procedures will reduce both your operating expenses and your overall tax liability. Let our experts explore the strategies that are best for you:
- By introducing appropriate accounting conventions into your daily procedures, we can reduce redundancy and conjecture within your financial practices. This can also reduce the chances of being audited by the IRS.
- Grouping techniques can also enhance the efficiency of your accounting department. When similar asset and liability categories are collapsed into a single line item for your itemized financial statements, the process of producing these required financial statements is reduced considerably.
- Your overall tax liability can be reduced by implementing effective cost segregation strategies. Our tax experts will review your assets to find areas where cost shifting may be appropriate. By shifting costs from an asset with a long life to one with a shorter life, the depreciation of the asset is accelerated. The deductible expenses for that asset increase and your overall tax liability decreases as a result.
Reducing Specific Liabilities
The tax liability of any individual or business is a combination of liabilities from many different sources. With so many potential sources of tax liability, it is crucial for businesses to consult with tax experts who know the tax code, find liabilities, and employ effective strategies for neutralizing them. The Diligentiam tax team works with your business to explore specific areas such as:
Unemployment tax. Every state uses an experience rating system to calculate employers’ payroll tax liability. Reducing the number of claims filed by former employees leads to a more favorable experience rating, which in turn reduces the employer’s payroll tax liability. This can be accomplished by reducing the number of hired employees. It can also be accomplished by challenging any improper unemployment claims made against you.
Property taxes. A careful review of your company’s real estate assets allows us to analyze each property, brick by brick, to ensure that all possible credits and deductions are being utilized.
The best way to reduce your business taxes is to implement a strategic plan that addresses the specific needs of your business. The tax experts at Diligentiam work with you to develop the best tax strategy for you.