BUSINESS TAX SERVICES
NPBC Accounting & Tax, PC – a division of NPBC Business Center – can do your taxes too! Our experienced CPA’s will ensure that every line on your tax return is correct and if you are due a refund, you will receive the maximum amount that you are entitled to.
We file individual returns, business returns, (Partnership, S-corporation, and C-corporation), and nonprofit tax returns (form 990 and 990EZ).
An experienced Certified Public Accountant will bring invaluable expertise to your business, serving as an advisor, as well as an accountant; this frees your time to focus on other parts of your business.
NPBC Accounting & Tax, PC, is a Certified Public Accounting firm that wants to be the trusted tax partner to your business. We make the following promises to you and your business.
- We will always treat your business information discreetly and with the confidentiality that you expect with your important data. While we may reference client stories to demonstrate our experience, we will never mention the names or financial details of our clients’ business. That information is not shared with anyone outside the firm.
- We will never lead you in the wrong direction or put your business in jeopardy. NPBC seeks to maximize tax deductions and tax credits. We will explore legitimate ways your business can qualify for tax credits, increase tax deductions, or qualify for business loans.
- We do not make promises before we’ve had the chance to understand your financials and your business. Just like you wouldn’t trust a doctor who prescribes you without seeing or examining you, you shouldn’t trust an accountant who makes claims without reviewing your financial statements and learning about your business.
- We will make a continual effort to understand the industry in which you operate. Obviously, you are the expert in your business, however, we strive to know enough to be proactive and prudent when it comes to spotting a potential opportunity for maximizing tax credits and tax deductions or lessening your tax burden.
- We will respond promptly to your phone calls, emails, and messages. We value our clients and will prioritize your needs and questions enough to make time to address them, no matter how busy we are. When you’re trying to reach your accountant, it’s absolutely critical that they are available to help you.
- Whether you know a lot or a little about accounting, you’re bound to have questions for us. With us as your accountants, we will answer your questions so you can understand. No muddled explanations that confuse you more than they help you. Any good accountant will take time to explain your tax return or the reasoning behind a particular piece of advice in a way that you can understand.
BUSINESS TAX ISSUES – DEPRECIATION
Is it wise to take accelerated depreciation all in one year or spread out the deduction over several years? There’s actually a lot of different factors that go into that decision.
Accelerated depreciation is allowed under the Internal Revenue Code under two sections, the first is section 179, the other is section 168k, also known as bonus deprecation. Let’s start with section 179.
The section 179 deduction allows businesses like yours to depreciate assets as expenses in the first year that they purchased them rather than over several years in smaller amounts.Depreciating assets all in the first year helps reduce overall profit, which is the figure you’ll ultimately end up paying taxes on. One snag with Section 179 is that it cannot drive your business into a loss, which means that your deduction is limited.
For 2021, the Section 179 deduction limit was raised to $1,050,000. The monetary limit on equipment purchases has also increased to $2.620,000. These increases are a welcome assist to businesses looking to move forward from the pandemic with relevant equipment purchases.
Section 168k bonus depreciation remains unchanged at 100 percent on eligible used or new assets acquired in 2021. Bonus depreciation comes into play once the Section 179 limit has been reached. Bonus depreciation can be taken even if there is a loss. The 100-percent depreciation will stay in effect until January 2023, when the first-year bonus depreciation deduction will decrease as follows:
- 80% for property placed in service during 2024
- 60% for property placed in service during 2025
- 40% for property placed in service during 2026
- 20% for property placed in service during 2027
It’s important to remember that to qualify for bonus depreciation, property that is classified as “listed property” under the tax code must be used more than 50 percent of the time for business.
Finally, now that you know what each of these items are, should you take advantage of them? The answer, as with most tax answers is, it depends.
Section 179 is almost always beneficial, as you can elect on an asset-by-asset basis which ones you want to depreciate using 179, and which ones you want to depreciate regularly. Regular deprecation is good, because you get a deduction over five or seven years, which is beneficial when you have low income this year, but lots of asset purchases. The depreciation deductions can be used to offset income in the future years.
Bonus deprecation, however, is an all-or-none election based upon class life. E.g. all 5-year class equipment put into service this tax year must be bonus depreciated. This can throw your business into a big loss while not producing much tax benefit at all. Sometimes it is better to elect out of bonus depreciation and keep assets depreciating over the normal recovery period.
One of the most important parts of running a business is keeping your finances in order. By hiring NPBC Accounting & Tax, PC – a division of NPBC Business Center – to work on business accounting, keep comprehensive financial records, file taxes, apply for small business loans, and plan for the long term is one of the best decisions a small business owner can make. Bookkeepers and accountants can do routine financial work day-to-day, but Certified Public Accountants have the skills to complete in-depth analysis, represent businesses at a tax audit, and help make more high-level business and tax decisions.
Our Full Service Certified Public Accounting Services
- Accounting System Design
- Budget and Financial Management
- Cost Containment
- Create and Analyze Budgets
- Forecast Revenue/Analyze Expenses
- Income Tax Preparation
- Insurance Audits
- Prepare Financial Statements
- Projections for Loan Proposals
- Review Loan Covenants
- Tax Compliance