By topic: Investment tax credits

How Renovating a Historic Building Can Put Money in Your Pocket

The federal Rehabilitation Tax Credit provides a 20 percent tax credit for owners or leaseholders to renovate certified historic buildings. Most states offer similar tax credits, with different percentages, providing additional cost savings. But this is tax law, and as you would expect, there are some tricky rules that you need to follow to qualify for these huge subsidies.

Q&A: Claim 30% Tax Credit for a New Roof to Hold Solar Panels

You’re eligible for a generous 30 percent residential tax credit when you install solar equipment on a residence and have it in use before midnight on December 31, 2019. The IRS instructions for claiming the credit are not as clear as you would like. But nicely, the tax code reveals the answer.

Claiming the New Employer Tax Credit for Family and Medical Leave

In many business environments, you compete for employee talent in a variety of ways, including perhaps by implementing a medical and family leave policy. The good news on this front is that your federal government may have given you a tax credit (yes, that lovely dollar-for-dollar offset to your taxes) for what you wanted to do anyway.

How to Deduct the Costs of Thinking about Starting a New Business

The government allows you to deduct and amortize a host of start-up costs and organizational costs when starting a new business. The tax rules in this area are unforgiving, meaning mistakes can prove costly. With proper planning, though, you can save money from your “thinking about it” costs and beyond.

Start-ups: New Bang for R&D—Save More as an S Corporation

Small start-up businesses have an unprecedented new way to save money, and it does not involve income taxes. The new way to save money is on your payroll taxes. How? By applying research and development credits to your payroll tax bill.

Selling a Business: Who Owns the Goodwill? Does the 3.8% NIIT Apply?

When it comes time to sell your business, it’s likely that you need to consider the intangible asset of goodwill. You have several things to consider, depending on the business entity you used to operate your business. For example, if you operated as a C corporation, how do you avoid double taxation on the goodwill? This article shows you how. Regardless of entity, how do you avoid the net investment income tax (NIIT)? This article shows you how.

Secrets of Collecting Residential Solar Tax Credits from the IRS

Your government offers a very generous subsidy, a 30 percent tax credit, if you install solar equipment at one or more of your residences. And if you live in the right area of the country, you can come out well ahead on this deal. But this is tax law, and as you would expect, there are some tricky rules that you need to follow to qualify for the credit.

How Tax Credits Make Historic Buildings More Affordable

Would a unique downtown historic building be the perfect site for your office? It may be more affordable than you think. Your state and federal governments want you to rehabilitate these buildings and give you a financial incentive to do so. Here is their offer to you: if you invest in and restore a historic building, the governments will give you tax credits to offset a huge chunk of the cost of restoration.

Tax-Deferred Exchange of C Corporation Stock? Yes, It’s Possible

How would you like to buy a small business, sell it at a huge profit, and defer the taxes as if you had completed a tax-deferred exchange? You can. It’s not a Section 1031 exchange. But it can give you the same exact tax deferral that you can achieve with a Section 1031 exchange. You find this great benefit in Section 1045 of the Internal Revenue Code.

Energy Tax Credits for Your Homes

For 2011, you can qualify for the uncapped and unlimited 30 percent tax credit for installing qualified solar, wind, and geothermal in your home, vacation home, or other residence.

How You, the Small-Business Owner, Can Cash In with Tax Credits for Health Insurance on Employees

Tax credits are a true incentive for the business owner. They reduce taxes dollar for dollar. Now, you have waiting for you a hefty 35 percent tax credit on small-business health insurance coverage for employees. Here are the rules you need to know.

New Health Care Law Makes Cash Gift to You with Deductions for Children Under Age 27

For business owners who have children ages 22, 23, 24, 25, and 26, the new health care bill contains a healthy break, and perhaps even better than that. Amend Section 105 plans now for this new provision. Download your sample plan from this article.

Big, Unlimited 2009–2016 Tax Credits for Installing Solar, Wind, or Geothermal

This new law gives you 30 percent uncapped and unlimited tax credits for installing qualified solar, wind, or geothermal energy improvements in your home, vacation home, or other residence.

New 2009–2010 Homeowner’s Energy Property Tax Credit

Tax credits are best. They reduce your taxes dollar for dollar.

Now, you can pocket a 30 percent tax credit of up to $1,500 when you install qualifying energy approved windows, doors, HVAC, insulation, water heaters, roofs, and similar property in your principal residence.

New Tax Breaks and Traps in Housing Rescue Law

The new housing rescue law (1) creates a $7,000 tax credit for first-time home buyers; (2) creates up to a $500 property tax deduction for the taxpayer who does not itemize deductions; (3) destroys some or all of the $250,000 tax-free exclusion for sales of vacation homes and rentals converted to principal residences; and establishes 1099-style reporting to the IRS of gross income from credit card receipts.

Jack Up Your Profits with Tax Credits

Historic rehab tax credits can put you in Donald Trump’s self-proclaimed favorite spot. Tax credits often exceed the cash you invest in the project making the historic rental or office building a “nothing down” deal for you. Add nonrecourse financing to the package and you have no personal risk. None of your cash in the deal and no personal risk—this is Mr. Trump’s favorite spot. You might do as many Congressional leaders do: Donate your personal home’s historic facade to charity so can realize big tax credits.