Training Credits

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It is possible you have filed your 2013 Corporate Return or perhaps thinking on how to get it all done by September/October 15th?

There is a simple way to save money on Georgia Taxes:

See if you have had any staff training in 2013?

Specifically if you have installed a new software or purchased a machinery that required extensive training. You may be eligible to receive up to $500 per person, per course and up to $1,250 per year in Georgia Income Tax Credit.

Now of course there is a bit of work involved to get the credit, but that is where we can help!

Summer is around the corner

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Many Businesses file an extension for various reasons. Listing them would require a separate site. But one thing we know for sure:

If you have filed an extension to secure some tax credits, Great Job!

Many States require various certifications, calculations and approvals before you can safely claim a tax credit. Some states have strict requirements to submit an intent to use a Tax Credit. Failure to do so, could forfeit important attributes of a tax credit. Make sure you financial professional pays attention to all deadlines. If you are not sure if your business could qualify. Give us a chance to find something for you.

Advantages of a Limited Liability Company & Partnership

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Of course you have been down the road INC or LLC? Well we will not go into the details of which one is better but here is a tip you may have not known:

You can assign Tax Credits to each member or owner based on a change in the operating agreement

Why is this important? Let look at the following example: Super Cool LLC, has two owners. One at 40% another at 60%. They were able to secure a $100,000 tax credit. Naturally Owner 1 gets $40,000 and Owner 2   gets $60,000. Both of these amounts flow onto their K-1, however Owner 1 has been busy with his investment activities and generated a larger liability this year, and Owner 2 cannot use the whole credit, since he/she had a loss in his/her business. Naturally Owner 1 can take a greater advantage of the tax credit and upon mutual agreement they decide to change their percentage to 80/20 for current taxable year. Therefore Owner 1 gets $80,000 in tax credit and Owner 2 gets $20,000. This arrangement will also flow income to the 2 owners with their respective percentages, but we will just assume it is very low this year.

You can still do it in an INC, but it is a bit more complicated.

Let us know if we can look up a tax credit for you!

As always we must add the following: Every situation is different, please call us or contact your Certified Public Accountant on any financial/accounting advise.