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Taxes

Don’t Let Your Taxes Be Taxing This Year

When tax season comes around, it is crucial that you get everything in order so that you can make the most of your earnings. It’s so frustrating, though, to go through all of your paperwork and finances that it often is worth it to find someone else to do your taxes. You put in the work and the effort all year making the money so now it is time to let someone else take the reins and help you make the most of tax season.

Finding the Right Person to Do Your Taxes

The main thing that you want from accountants is to know that they have knowledge of how to make your money go farther. A lot of us approach tax season by doing the bare minimum with our forms and often leaving it to the last minute. These professionals know how to:

  • Stretch your money
  • Get you the best value
  • Make sure that you meet all of the requirements
  • Utilise all the tax breaks possible

Letting someone who is a part of certified tax services in Purley take over is the same as getting an expert roofer to repair your damaged roof.

Getting the Most from Your Money

Nobody likes to face his or her taxes but knowing that someone could be getting you more bang for your buck will always make you feel better. Giving over the responsibility of growing your finances to someone else allows you to feel that you made a great financial decision while also not letting the stress of tax season get to you. Let the professionals crunch the numbers while you take your earnings and have fun.

Enjoy your money and relaxation all at once with the perfect accountant for you.

Categories
Taxes

The Ins and Outs of a Swiss Holding Company

Switzerland is perhaps the most popular location for a holding company, and with so many benefits, it isn’t hard to understand why this economically stable country that is set in the Alps, is such a desired location to set up a company. One of the major attractions is the very low rates of taxation, and traditionally, Switzerland has always done what it could do attract wealth, with very agreeable personal taxation that attracts the rich and famous. If you are contemplating setting up a holding company, here are some details about the benefits you can drive from selecting Switzerland as the venue.

The Objectives of a holding company

A holding company is set up purely to “hold” stock in other companies, and as such, the holding company does not sell a product or service, but rather exists to manage assets, which could be in the form of company shares or stock. Swiss holding companies are given generous tax exemption on certain business activities, which holding companies happen to be involved in. A holding company could be set up to manage intellectual property rights, or other corporate assets, and in that case, some Cantons in Switzerland offer an exemption for this type of company. Capital gains can also offer an exemption or a reduction, again depending on the Canton where the company is registered.

Professional Guidance

To enter such a complex process without the help of a company that specialise in Swiss company formation, would certainly cause you some stress, and with so many additional services on tap that you might require, they can really be invaluable to the foreign investor. You might want to set up a virtual office in Switzerland, and this can easily be arranged, along with website design and construction, and even virtual reception facilities if you require it.

Multiple Taxation Levels

Switzerland has a complex taxation system, and you would be levied at three levels, namely, Canton, federal and communal. If a holding company is trading with non-Swiss companies, then you are exempt from income tax on dividends earned from such activities. The system is very complicated, which is why you should enlist the help of a professional company that offers this type of service to foreign nationals.

Full Range of Business Amenities

You might not require a Swiss office, and only need your mail forwarded, or it might be necessary to hold business meetings, which would require the use of a conference room. Some people prefer to have a virtual office, with professional receptionists answering and forwarding calls, and that way, you can project a successful image with minimal cost.

More and more private investors are realising how beneficial a Swiss holding company would be, and with expert guidance, the process can soon be completed, and your new enterprise can grow steadily on a solid business platform in a very prestigious country. A quick online search will put you in touch with the right organisation who can get the process started and guide you to success.

Categories
Taxes

Equipment Leasing and Section 179 Tax Benefits

It is important in business to keep cash flowing efficiently and one means of achieving this is by watching out for the tax breaks you can possibly take advantage of. The idea of using equipment leasing as a means of acquiring the tools, equipment and vehicles necessary within your business is attractive because it removes all the upfront costs associated with buying. Leasing is certainly useful for new companies that are going through their initial startup months, allowing them to go straight to maximum functionality and service their customers without waiting for the capital to be raised. It is good to know that the advantages of leasing are increased by the tax advantages available to you in Section 179.

Section 179 will reduce your Tax Bill for Equipment Leased

IRS Section 179 allows you to save on equipment leased items that are new to the business by deducting them as an expense within the year of obtaining them. Such equipment can be financed through companies such as Shoretel or TAMCO. As long as the equipment is in service the same year the deductions are claimed then businesses will continue to take advantage of enjoying the deductions from the IRS and reducing their tax bill through leasing. The equipment required by the business does not need to be taken out of the capital available, leaving that to be used more effectively elsewhere.

However Section 179 benefits have been cut back drastically in 2014. The maximum deduction that could be elected now falls from the recent year’s maximum of $500,000 to a more modest $25,000. The threshold of property also fell from $2,000,000 down to $200,000. Section 179 is part of the governments continued effort to stimulate growth and is still a useful tax break that should be taken advantage of as it could disappear in the future. It reduces the initial cost of ownership of the equipment by changing it into an operating expense and allows its depreciation to be 100% over the lease term.

The benefits of Section 179 also apply to equipment that is leased out from the company too. The deductions to the tax bill can still be applied and this is a very popular strategy that businesses use.

Equipment Leasing Tax benefits dependent on your Location

It is worth checking with the IRS to see if the business location attracts more tax benefits as some areas qualify for increased Section 179 deductions. The IRS has defined a number of zones that these special rates apply to, all around the country. The New York Liberty Zone that exists within part of the borough of Manhattan is one, alongside many Enterprise Zones and Renewal Communities (RCs) throughout the US. These zones are usually areas that need jobs and revitalizing, many rural areas especially are included.

After the disasters suffered by the hurricanes Katrina, Wilma and Rita many areas that were affected now receive extra benefits. These Gulf Opportunity Zones, or GO Zones, in fact receive the biggest deduction limits of $100,000, rather than the $35,000 limit that is common for Enterprise Zones and RCs.

What Equipment can be Deducted for Section 179?

A wide variety is covered that can take advantage of the Section 179 tax benefit. For example, office equipment and the furniture required can be covered, along with computer hardware and software used within it. Most hardware, any kind of machinery and manufacturing tools are covered, even vehicles and some property as long as it is for business use.

There are a number of rules that surround computer software, such as it must be fully leased by you and for the purpose of producing an income for the business. It must also last longer than a year and be something that can be bought by the general public off the shelf, or at least is in the public domain. It does not include software that you have an exclusive license for and must not be substantially modified or customized for you. A number of well-known packages of often used in the office will be perfect for taking advantage of this.

Business vehicles covered must be over 6,000 lbs. in weight and can be new or used. The vehicle just needs to be new to the business to take advantage of the reduction. Any passenger vehicles that are used at more than 50% for the business are applicable too.

The property that may be considered will have a single purpose for the business and be anything attached to your building that is not normally part of the structure of it. This can be anything like a large manufacturing tool or a printing press.

Some personal property can qualify, as long as it is something tangible and bought within that year for the business. Any tools or hardware that are not used 100% of the time for the business can also qualify, however the percentage of the time being used for personal purposes will need to be propportioned in.