Free CARES Act Webinar for Commercial Real Estate Owners

9 Apr

Tuesday, April 14, 2020 1:00 PM CST

If you own or lease commercial or residential income property, this will likely be the most critical information you have heard since the Covid-19 outbreak.

During this uncertain time, most business owners are faced with difficult decisions regarding cash flow. We can help you increase cash flow NOW, through new and existing tax legislation, because you own commercial property.

Please don’t miss this critical tax information.

Join us for a live 30-minute webinar on Tuesday, April 14th at 1:00pm CST. We will be discussing how, as a business owner, you are able to make cash available immediately by utilizing existing tax laws and the new CARES Act. We will be explaining two specific items, NOLs and Qualified Improvement Property, within the act that have been designed to allow you to get money back from the US Treasury when you need it most. These topics are not related to the SBA loan process; this is an additional viable source of cash flow.

Please click the link below to register for this live webinar with Q&A so that you can have all your questions answered in one place. Seating is limited, so please register soon. 

Whether you are a tax professional joining the session on your client’s behalf, a building owner, or lessee looking for a solution to a very real problem, we are here to answer any questions you have.

CLICK NOW TO REGISTER

CSSI has been called on during economic downturns in the past, saving businesses in the path of financial destruction. 

“Thank you so much CSSI! Without the influx of cash I received from my reduced tax payment, I would have had to close my new location. You literally saved my business. I will forever be grateful.“

                                                                                                      – Barbara S.

About CSSI: For years, CSSI has been providing quality and affordable engineering-based cost segregation studies. Our national coverage and expertise allow us to work with customers and properties across the United States.

With over 20,000 studies performed, we are the premier company proving cost segregation studies and Tangible Property Regulation studies for U.S. Properties.

This webinar will be presented by Warren Dazzio, Executive Vice President, and Robert Taylor, VP of Operations at CSSI.

The CARES Act and Cost Segregation – New Opportunities

30 Mar

The CARES Act, a $2.2 Trillion bill was passed in response to the Corona virus Pandemic. There are parts of this bill that will have a direct impact on Cost Segregation. Please contact me for more information or to assist you in helping your clients take advantage of this new information.

Net Operating Losses:

Allows for a five year carryback of net operating losses arising in 2018, 2019, and 2020. It also allows net operating losses to offset 100% of income (as opposed to being limited to no carryback and only to 80% income offset from carryforward losses under the Tax Cuts and Jobs Act of 2017 that was in place before the CARES Act).

Impact – Example – A Cost Segregation study is applied in 2019 which causes such a large depreciation deduction that the client reports a net operating loss in 2019. He can carry this loss back for 5 years and apply it to gains made in those years. This would result in a tax refund providing cash flow in a time of need.

Important Note – The 5 year carryback rules require you to go back 5 years and roll forward from there if the loss is in excess of the carryback years income.
Example – John Smith has income for the past 5 years, and a loss in 2019 as follows:
2014 – $75,000
2015 – $150,000
2016 – $400,000
2017 – $350,000
2018 – $195,000
2019 – $(425,000)
In this case John would roll the $425,000 loss back to the 5th year 2014 and offset all of that income, then roll the remaining $350,000 to 2015 and offset all of that income, and finally roll the balance of $200,000 to 2016.

Qualified Improvement Property:

Qualified Improvement Property has been corrected to be identified as 15 year property meaning it would be eligible for 100% bonus depreciation. This change is effective for property acquired and placed in service after 9/27/2017.

Impact – Since the definition of Qualified Improvement Property was introduced, CSSI has been identifying this property as Qualified Improvement Property within our reports. This property is now eligible for 100% bonus depreciation, so previous clients with this type of property included in their reports can now retroactively apply bonus depreciation to these improvements. 

More Time:

With the extension of time to file for 2019 taxes, there are opportunities to still have Engineering-Based Cost Segregation done for any commercial or rental residential properties over $200,000.  

Contact Me Directly

Call me at 770-224-8504 or 888-780-1333
Email me by clicking here
Visit my website by clicking here
Visit my Youtube channel by clicking here

The Dentistry Uncensored Podcast with Dr. Howard Farran

5 Mar

I recently had the opportunity to join Dr. Howard Farran for a recording of the “Dentistry Uncensored” podcast at his studio in Phoenix, AZ. We spoke of all things concerning cash flow in the dental and oral surgery practice.

Howard Farran, DDS, MBA, the founder and owner of Dentaltown.com and Dentaltown magazine, has practiced dentistry at Today’s Dental in the Phoenix metro area for more than 30 years. In 2017, Incisal Edge magazine ranked him among the 32 most influential people in dentistry.

You can watch the podcast video by clicking here

Or listen to the audio podcast by clicking here

If you are have difficulties or questions about your practice’s cash flow, or would be interested in learning how your cash flow can be improved, contact me for a no-cost, no-obligation Cash Flow Checkup.

Contact Me Directly

Call me at 770-224-8504 or 888-780-1333
Email me by clicking here
Visit my website by clicking here
Visit my Youtube channel by clicking here

Maximize Your R&D Tax Credits

17 Feb

In research and development tax credits, some cost related to wages, supplies and contract research are eligible.  Many times, however, taxpayers tend to overlook some of the processes and work that can be included to maximize the tax savings.

Contrary to popular belief, R&D credits are not limited to things that have not previously been done.  Many think these credits are limited to new inventions like the cell phone, or the lightbulb, but that is not the case.  The Internal Revenue Service does not require that technology be revolutionary or new innovation to be eligible for these tax credits.  The only requirement is that products and processes be improved.

Unfortunately, those who could benefit from claiming R&D tax credits either fail to claim them, or leave money on the table, because they aren’t aware of all the activities that qualify.  R&D credits are a dollar-for-dollar reduction in income tax liability that is either underutilized or not utilized at all every year.

Here are some often overlooked qualifiers for R&D credits:

CLOUD COMPUTING NETWORK COSTS

Cloud computing server, platform and SaaS software application innovation costs may be qualified research expenses that are eligible for R&D credits.  Leasing cloud computing time is often cheaper and easier than purchasing locally hosted servers and outfitting data centers.  These expenses may be eligible when the cloud servers are located away from the taxpayer’s premises and operated by another.  The taxpayer must not be the only, or primary, user of the cloud server.

AUTOMATION THAT IMPROVES EFFICIENCY OF PROCESSES

Improving workflows and processes in manufacturing may also qualify by using process automation tools.  Automated shelving, labeling systems, and the use of robotic arms are some of the process automation tools that may be involved.  In the case of a robot, while the cost of the robot cannot be used for R&D credits, the time invested in designing the type of robot, how and where the robot will be used, and the testing involved may be qualified expenses.

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING

Any process of product that uses machine learning or artificial intelligence to determine how to better accomplish a process, or increase its efficiency, qualifies for R&D credits.  Machine learning can assist in the decision of where to place a robotic arm for the most efficient and effective use.

REPLACING AN OBSOLETE PART OR PRODUCT WITH NEWER TECHNOLOGY

A common scenario in which these expenses may qualify for the R&D credit, a piece needs to be replaced as part of a manufacturing process, but the supplier no longer makes the part.  If a direct replacement cannot be found, the taxpayer may change their product or process to accommodate a new part on the market, requiring design changes.  These changes may be related to size, functionality, geometry or other elements.

When the obsolete part is so old, new technology may also provide a better answer than a retrofit.  Research and testing must be done to accommodate the new technology.  If the taxpayer can provide proof of concept, demonstrate how the new technology improved the product or process, and document the failure points, they may be able to recoup the amount expended for design and testing.  The wages related to a marketing associate who provided the design input to the improvement or features that should be created through the new technology, but they must be able to show documentation of the individual’s contribution to the process, and that they had the sufficient technical experience necessary to participate in the design.

MACHINE LEARNING AND AI

Any product or process using machine learning or artificial intelligence to learn how to do something better, more efficiently, or faster, qualifies for R&D credits.  For example, machine learning might help a company learn where to place a robotic arm for its best use.

These are a few activities that might be overlooked in considering expenses for the R&D credit in manufacturing products and processes.  This is not an exhaustive list but may help in thinking through how to maximize your research and development credit.  Activities do not have to necessarily fit the textbook definition of research to qualify.

If you have questions about R&D credits or their application, please give me a call at Cash Flow Strategies, Inc.  We have a team of experts who can certainly answer your questions regarding this topic, Cost Segregation, Section 179, The 2014 Tangible Property Regulations, and the Real Estate Professional designation.

Contact Me Directly

Call me at 770-224-8504 or 888-780-1333
Email me by clicking here
Visit my website by clicking here
Visit my Youtube channel by clicking here

The Impact of Bad Debt on Sales

28 Oct
business vision concept and man standing on money

Companies may sometimes become accustomed to thinking of bad debt as a cost of doing business. After all, every accounting department has to write off bad debt every once in a while, right?

That’s not necessarily the healthiest way to view any bad debt you may have out there. Instead of worrying about your write offs, you want to be able to focus on new sales, revenue growth, profitability, and brand awareness. And as we all know, reducing bad debt can, and will, have a direct impact on your bottom line.

By the Numbers

When you have to write off large portions of bad debt, you simultaneously must increase the pressure on your sales team and marketing staff to recoup the revenue you lost in those write-offs. Ultimately, you want your sales to drive growth, improve cash flow, and create new opportunities for your business.

A cash-positive business can hire more employees, expand into new locations, and upgrade equipment. When you’re drowning in bad debt, however, you’re too busy making up for losses.

If you’re using your sales to cover write-offs you’re reducing your business’s accounts receivable management efficiency and leaving money on the table. Worse, your sales, advertising, and marketing employees are faced with enormous stress as they scramble to improve customer acquisition and retention rates.

To understand how bad debt impacts sales, you need to know two metrics:

  1. Your net profit, and
  2. The amount of money you’ve written off.

Let’s say that you’ve written off $100,000 in bad debt and your profit margin is 5 percent. In this scenario, you’ll need to generate $2 million in profit to offset that loss.

Check your DSO numbers to determine whether you’re operating efficiently. Companies with a DSO of fewer than 45 days (and ideally 30 days) typically enjoy better cash flow and fewer write-offs. If your DSO has extended to 60 or 75 days, however, your bad debt could have an increasingly negative impact on your sales.

The solution is two-fold.

First, create a solid debt-collection strategy. Don’t wait until the 90-day mark to start calling customers and asking about unpaid invoices. Take a more active approach.

Consider working with a professional, third-party debt collection company. Some businesses don’t have the resources to mount a full-scale debt collection strategy cost up-front. Working with experienced experts should increase the amount of unpaid debt you collect, which automatically reduces potential write-offs – and offsets the relatively modest cost compared to in-house efforts.

Second, stop thinking about bad-debt write-offs as a cost of doing business. Profitable companies focus on revenue growth and stability. They don’t like to feel hampered by bad debt. “Fire” clients who don’t pay their bills, vet potential customers carefully and urge your sales team to take a full-funnel approach to acquiring and retaining clients.

Yes, bad debt can impact sales. Fortunately, there are available solutions to help avoid this trap. We encourage you to learn more about how to optimize your revenue so you don’t get stuck in the bad-debt trap.

Contact Me Directly

Call me at 770-224-8504 or 888-780-1333
Email me by clicking here
Visit my website by clicking here
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3 Debt Collection Strategies That Work

19 Oct

Ever wonder why some business have better luck collecting debts than others? Let’s find out. Hint: Luck has nothing to do with it.

When your customers owe money, you send an invoice and expect to receive a check in return. However, history tells us that you won’t hear anything but crickets chirping from some customers. About one in every 20 Americans has defaulted on some type of non-mortgage credit. You don’t have to resign yourself to writing off bad debt, though. You might just need a better strategy.

Shift Your Mindset

Your current strategy doesn’t work, so why keep using it?

Effective debt collection starts with a paradigm shift. Instead of thinking about unpaid accounts in terms of “collections” and “bad debt,” start thinking about your entire accounts receivable cycle. Just as preventive medicine can keep patients from getting sick, a holistic approach to finance can improve cash flow and help you predict future obstacles.

That’s why we use analytics to score our customers’ accounts receivables and to help them avoid unnecessary risks. If you have an effective accounts receivable management strategy in play, you won’t have to face collections as often.

Does this mean that you’ll never have to send an overdue payment notice? Probably not. However, you won’t have to worry about bad debt crippling your business because you’ll make smart, holistic financial decisions for your business.

Change Your Approach

Fear and panic won’t help your customers pay their bills faster.

Research shows that financial troubles can cause depression, anxiety, and other mood disorders in consumers. Some people use unhealthy coping mechanisms to handle stress, often denying that a problem exists. In other words, your overdue payment notice gets shredded with the other collection letters. The customer just can’t face the problem.

A compassionate debt collection strategy might help you collect cash faster. Instead of intimidating, threatening, or berating your customers, show them that you understand their predicaments and that you’re willing to work with them.

We’ve discovered that customers pay faster and more reliably with our empathetic approach to collections. We start with gentle reminders and continue collections even when accounts move from unpaid to dormant.

Work With Accurate Data

A customer moves and doesn’t give a forwarding address. Now what do you do?

When you don’t have accurate information for your customers, you can’t collect their debts. Account scrubbing technology proves invaluable when you need to correct errors in your master files so you don’t waste time and effort on bad information.

We have a database that contains more than 450 million records. We use that database to update your information so that collection practices can continue without obstacles.

If you’re struggling to collect bad debts, you might need a change of strategy — or you might need an experienced partner. We’re experts in the accounts receivable management field, and we help our customers remain financially solvent every day. Learn more about how to optimize your revenue, then get in touch. We’re excited to help you turn ineffective collection strategies into cash.

Contact Me Directly

Call me at 770-224-8504 or 888-780-1333
Email me by clicking here
Visit my website by clicking here
Visit my Youtube channel by clicking here

Bonus Depreciation – Tax-Saving Tool for Your Business

14 Oct

Bonus depreciation is a valuable tax-saving tool for businesses. It allows your business to take an immediate first-year deduction of 100% deduction on the purchase or renovation of eligible business property.

Depreciation of a building would normally be spread out over the life of the asset

What is Depreciation?

Depreciation allows (or requires) businesses to spread out the cost of long-term assets over the life of the asset. The alternative would be to take the cost of the asset in the first year after the asset is acquired by the business, but this isn’t realistic. The most common way to depreciate a business asset is by spreading out the cost evenly over the asset life – called straight-line depreciation. Increasing in popularity, especially with the new Tangible Property Regulations, is the Cost Segregation Method or Accelerated Depreciation.

Accelerated Depreciation  allows you an additional deduction of 100% of the cost of qualifying property

What is Bonus Depreciation?

Bonus depreciation is a method of accelerated depreciation which allows a business to make an additional deduction of 100% (this was 50% prior to the new Tax Cuts and Jobs Act passed last month) of the cost of qualifying property in the year in which it is put into service.  Bonus depreciation can be applied to any new asset with a 20 year life or less.  This includes land improvements which are not considered personal property.

  • The 50% Bonus Depreciation rate is increased to 100% for qualified property acquired or built after September 27, 2017.
  • Bonus Depreciation has been expanded to apply to both newly constructed buildings and used property purchased and acquired after September 27, 2017. Bonus eligible property must have a depreciable life of 20 years or less.
  • Qualified Leasehold Improvements, Qualified Retail Improvements, and Qualified Restaurant Property are all replaced with Qualified Improvement Property (QIP), which has a 15-year recovery period and is eligible for 100% bonus (restaurants now have a class life of 39 years).
  • Structural items like interior supporting framing, escalators, and elevators are not included in QIP. The improvements must have begun at least one day after the building was put in service for its intended use.
  • Items removed, discarded, or abandoned have value that should be removed from the depreciation schedule and identified as a partial asset disposition (PAD). This must be done in the same tax year as the removal or the tax payer loses the ability to capture the write down.

Contact me directly

If you own commercial or income property and have not had a conversation with a trusted cost segregation provider, don’t wait. Contact me today for a free estimate of the tax benefits you may be missing.

Call me at 770-224-8504 or 888-780-1333
Email me by clicking here
Visit my website by clicking here
Visit my Youtube channel by clicking here
Learn more about Cost Segregation by clicking here
See my blog post on The Tangible Property Regulations
See my blog post on How To Select a Cost Segregation Firm

4 Benefits of Using Merchant Funding Rather Than a Bank Loan

16 Sep
Merchant Funding

While a bank loan might be the first thing you think of when you need cash for your business for capital improvements or to cover a slow season, there are alternative choices to consider that can be just as strategic—maybe even more so. Merchant Funding is one of them.

Utilizing Merchant Funding, a business owner can receive a lump sum of capital in exchange for a certain amount of their business’ future sales. Merchants utilizing this as their best financing option reap plenty of benefits.  

1. The application process is easy.

For starters, applying for merchant funding is quick and easy. More often than not, you can fill out a short, simple application, providing specific information and documentation pertaining to your business, such as your Business ID and recent bank statements. This shouldn’t take long to complete, and most providers will respond within 48 hours. Such a simple process lets you stay focused on your business, rather than being swamped with hour-long applications that don’t lead to any replies, while still having the opportunity to receive funds.

2. It gives you access to capital, quickly.

If your application is approved, you could receive the capital from your provider in less than one week. Obtaining these funds in such a short amount of time enables you to start putting money back into your business and improve cash flow.

For example: Some merchants choose to invest in new advertising campaigns in order to reach more consumers, while others use the cash to purchase updated equipment to improve internal efficiencies or to cover payroll.   Those are just a few possible ways to utilize your newly acquired funds. You could also give your workspace a much-needed facelift. Or maybe paying off outstanding debt is what you’re focused on–and words cannot describe how good it feels to become debt-free.

3. Your credit won’t be affected.

Securing a merchant cash advance won’t negatively affect your business’ credit. This is because you’re not taking out a loan, but instead, simply selling future credit card sales for capital. As a result, you won’t have to worry about making monthly payments. Plus, many providers don’t use your FICO score as qualification, so you won’t need to spend time trying to improve your credit before applying. In fact, the newfound funds from a merchant cash advance can improve your credit if you use it to pay off debt.

4. You won’t be as stressed.

Although owning a business is extremely rewarding, it comes with great responsibilities, too. This can be stressful, especially if you’re tight on cash. Merchant Funding help alleviate some of these pressures, thus lowering your stress levels. Eliminating financial stresses will enable you to endcjoy your job again and remember why you love being a business owner.

Contact Me Directly

I can help you determine very quickly how much quick cash you could receive. To get pre-approved, or just get more information, contact me directly.

Call me at 770-224-8504 or 888-780-1333
Email me by clicking here
Visit my website by clicking here
Visit my Youtube channel by clicking here

The Business Benefits of Streamlined Debt Collection

9 Sep

“Streamlined” is an adjective most people wouldn’t normally associate with debt collection. B2C or B2B debt collection can be fraught with challenges, and it isn’t always straightforward. Yet developing a streamlined solution to debt collection is essential for businesses in order to keep cash flow positive and ensure the business always has sufficient working capital.

When you can’t collect on what people owe you, business becomes more complicated. Not only do you have to pursue that debt so you can collect what you’re owed, you may have to deal with complications like bumpier cash flow and lower working capital. In other words, problems from uncollected debt ripple outward, potentially affecting your entire business.

Debt Collection Get Results While Protecting Your Brand

Streamlined debt collection services exist, and the best ones not only collect the money people owe you, but they also do so with utmost attention to protecting your brand, your data, and your customer’s data. Many small and medium enterprises simply don’t have the personnel and time necessary to devote to creation of a streamlined debt collection process.

Brand protection is essential in the internet age, when people regularly do online research before choosing products and services. For B2B business in particular, brand protection is essential during the process of B2B debt collection, because business relationships have enormous influence on reputation and the ability to succeed long term.

Accounts Receivable Management Can Prevent Debt Collection Problems

One way to streamline your debt collection process is to prevent the need for it in the first place. However, managing accounts receivable (AR) is a big job, and many small and medium enterprises don’t have a designated AR officer who can focus on this crucial responsibility.

Fortunately, there are debt collection specialists that offer a range of services, including AR management, and this alone can streamline debt collection for small businesses without a designated AR officer. And when the same debt collection specialist has to deploy more traditional debt collection techniques, they’re prepared to act without delay.

Pre- and Post-Charge Off Services Help Maximize Revenues

Pre-charge off debt collection is an excellent first line of defense in debt collection. Early intervention is essential when pursuing debts, because the likelihood of collecting decreases with every day that passes. When your debt collection service pursues early debt recovery, the result is fewer delinquencies and defaults, and maximum cash directed back into your business.

Post-charge off debt collection is more challenging, but if your debt collection provider has experience in this process, you can minimize losses due to unpaid debts and help ensure healthier cash flow. With technological tools that allow faster skip-tracing, your debt collection specialist can more quickly locate the correct party and accelerate recovery of even the most challenging cases.

It’s not easy for small and medium enterprises to stay on top of AR management and debt collection, yet these processes must be managed well to ensure good cash flow and sufficient working capital.

Contact Me Directly

For more information on streamlining the debt collection efforts for your business or medical/dental practice, contact me directly.

Call me at 770-224-8504 or 888-780-1333
Email me by clicking here
Visit my website by clicking here
Visit my Youtube channel by clicking here

The Tangible Property Regulations for Commercial and Investment Property Owners

3 Sep
Tangible Property Regulations
Magnifying Glass and Tax

AN ADVANTAGEOUS TAX CHANGE

One of the largest changes to tax code since 1986 was passed in 2015, and these changes directly affect real estate owners and investors. These regulations are extremely taxpayer friendly, but most owners and investors are not aware of them. They are called the Tangible Property Regulations (TPRs), under code section 263a (1-3). The regulations put all the past court cases and past regulations into one single code that also contains a few interesting twists.

WHAT ARE THE TPRs?

The TPRs clarify which expenditures and repairs on buildings can be written down and which must be depreciated over 39 or 27.5 years. It is very advantageous for the building owner or investor to write down as many repairs as possible. This is because they not only receive a one-time expense of the entire expenditure but will also have reduced capital gains upon the sale of the building.

Generally, they are as follows:

The expenditure (or renovation) can be expensed if it meets these criteria:

  • done more than two years after purchase
  • did not make the component being repaired or replaced materially better
  • affected less than 33% of all the like components.

IRS SAFE HARBORS

There are also three Safe Harbors which allow certain expenditures to be expensed without IRS scrutiny.

  1. The De Minimis Safe Harbor is for expenditures under $2500.
  2. The Small Taxpayer Safe Harbor covers many expenditures on buildings with a purchase price of under $1 million.
  3. Routine Maintenance Safe Harbor is for expenditures to keep the building in its normal operating condition which will also have to be repeated at least once in the subsequent 10 years.

POTENTIAL REVERSALS

The amazing opportunity is under code section 481A, if past expenditures (not De Minimis or Small Taxpayer) which are currently being depreciated would not be depreciated today, (based on the regulations), they can be expensed in the current year.

So, the regulations will positively affect the building owner or investor moving forward but in addition can create a permanent tax deduction right now.

CONTACT ME DIRECTLY

For more information on the Tangible Property Regulations and other cash-flow producing and tax-saving strategies for property owners, contact me directly.

Call me at 770-224-8504 or 888-780-1333
Email me by clicking here
Visit my website by clicking here
Visit my Youtube channel by clicking here

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