Business Tax Services
A holistic and coordinated approach to complex tax issues 800-705-9968Free complimentary consultationFast Turn Around!
If your CPA Tax Advisor can’t turn your business tax return around in 14 days, call us and we’ll get it done in 7 days, guaranteed!
Don’t suffer from business tax headaches any longer, get relief!
Afterwards I recommend we take a long term look. Create a tax plan for the business.
Tax Legislation
The new tax reform law increases both the complexity and potential opportunity in your tax planning. The new tax reform law raises many questions and potential complications. But it can also bring promising new opportunities.
Growing businesses needs strong tax management
Many businesses are eager to better coordinate and outsource their compliance processes. We prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
As well as having skills and experience in tax consulting and compliance, we can support you in the following areas:
- Tax Compliance
- Tax Opinion
- Tax Planning
- Tax Practice Review and Advisory
- Litigation and Dispute Consulting
What is tax efficiency?
While there are many factors related to the successes and failures of small businesses, one thing is often ignored: tax management. Tax efficiency is managing a small business taxes in relation to other objectives and concerns.
- Manage your deductions effectively
- Save your time and energy. Many business owners think because they can do something, its worth their doing.
- Long term business growth.
- Avoid audits
- Finance considerations. Banks and other financial institutions review tax retruns.
- Structure and entity planning
Depreciation Calculator Notes: MACRS Tax Depreciation
The Internal Revenue Services uses MACRS
The IRS uses the Modified Accelerated Cost Recovery System, otherwise known as MACRS. Mofified Acclerated Cost Recover System or MACRS starts the caclulation with double declining balance and switches to straight line. Double declining balance is 200% of the declining balance method. The switch occurs when straight line depreciation is greater than the amount for double declining balance. Therefore, the depreciation calculator doesn’t calculate tax depreciation expense. However, you can make modifications to get tax depreciation. Call me at 954-686-6250 if you have any questions.
How to get MACRS or Tax Depreciation
When using the Double Declining Balance method for depreciation, a switch to the Straight-Line method typically occurs when Straight-Line results in a larger expense than Double Declining Balance for the remaining asset value. This usually happens because DDB emphasizes heavier depreciation in the earlier years, while SL provides a consistent expense throughout the asset’s useful life.
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How to Determine the Switch Point
- Calculate Annual Depreciation: Compute annual depreciation using both the Double Declining Balance and Straight-Line methods.
- Monitor Yearly Amounts: During each year, compare the depreciation expense calculated by the DDB method with the expense that would result from switching to the Straight-Line method.
- Switch When SL Is Greater: When the depreciation expense under the Straight-Line method for the remaining useful life becomes greater than the expense using DDB, switch to Straight-Line for the rest of the asset’s life.
In summary, the switch occurs at the point where the remaining book value divided by the remaining life (Straight-Line) exceeds the depreciation expense calculated using the DDB method. This ensures the asset is fully depreciated by the end of its useful life
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David Weinstein MBA CPA CFE
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For inquiries or requests that require a more personal response, I will make every attempt to respond within 48 hours.