Business Cash Flow Solutions for Challenging times
Is cash flow a problem? Here are some opportunities that can provide liquidity in a prompt turnaround timeframe. These recommendations are designed for those who have a sense of urgency and need cash now.
(1) If you have owned a Commercial Building of greater value than $750,000 for less than 20 years, or if there have been renovations within the last 15 years, you will want to check the availability of a specialized Commercial Building Cost Segregation Tax Credit. This can potentially mean saving hundreds of thousands of dollars giving you access to extra cash in a short turn around time. Request a No Obligation Proposal.
(2) The CARES Act expands the availability of small business loans under Section 7(a) of the Small Business Act to include the new Paycheck Protection Program. The proceeds of these loans may be used for payroll costs, mortgage interest, rent, utilities and interest on certain other debt. Up to 100% of these loans may be forgiven, subject to certain restrictions.
Eligibility includes any business with fewer than 500 employees including Sole Proprietors. The requirements to provide collateral and a personal guarantee have been waived. Interest rates may not exceed 4%. The maximum amount to be borrowed cannot exceed $10 million or 2.5 times the average total monthly payroll.
(3) Increase cash flow with the CARES Act Employee Retention Payroll Tax Credit (ERC). There are credits available for employers who are closed, partially closed, or experiencing significant revenue losses as a result of COVID-19. The ERC could be a valuable alternative for those who either did not apply or did not qualify for PPP and other emergency loans.
Let our experts work with your tax professional for implementation. Our Employee Retention Tax Credit Service will help your tax professional capture this extra cash. Request a No Obligation Proposal.
An Eligible Employer (including all members of a control group) must either:
- Have their operations fully or partially suspended due to orders from a governmental authority OR
- Suffer a significant decline in gross revenue.
An Eligible Employer CANNOT be either:
- A governmental employer OR
- A recipient of a PPP loan.
(4) Before the CARES Act, the Tax Cuts and Jobs Act (TCJA) and other legislation severely constrained the ability to use net operating losses (NOL's) to lower tax liabilities. TCJA restricted carrybacks of NOLs and limited carryforwards to 80% of taxable income. After the CARES Act, corporations incurring tax losses during 2020 in the US can now elect to carryback NOLs as far back as 2015.
The cash refund savings can be as high as 35 percent when electing to apply 2020 NOLs to taxes paid during 2015, 2016, and 2017 (before tax reform). Since US federal tax rates were reduced after tax reform, the federal tax refund could be as high as 21 percent for 2018 and 2019. A company that can optimize its tax NOL position can carryback losses for taxes paid in recent years. For all years, there are complicated provisions that could limit the savings from carryback losses. Request a No Obligation Review of Your Circumstances.
(5) If your company operates Internationally, transfer pricing corrections may lead to substantial tax savings. Many US and foreign clients are unaware of the tax and cash flow benefits of proactive planning. For example, US tax reform creates some new incentives for multinationals to increase US taxable income to reduce taxes payable. Strategic intercompany pricing strategies can lead to substantial savings on a global basis. Request a No Obligation Proposal.
(6) Another specialized tax incentive that improves cash flow is the business research and development tax credit . Are you being properly served in the analysis and application for this credit? Give us a 15 minute "no fee" conference call to find out. Request a No Obligation Proposal.
(7) Immediately improve your bottom line cutting utility cost without capital expenditure and without incurring debt. Savings are immediate WITHOUT cash outlay or debt obligation.
(8) Save money on your phone bill and Internet. If you are paying more than $17.99 per line per month, you are spending too much. Also, with so many employees now having to work from home, it may be to your advantage to sign up for a special $14.99 per line pricing for ''off premise soft phone lines''. Additionally, we can review, without obligation, your current Internet service for the purpose of identifying a better value. We are not captive to any particular telecommunications carrier or internet service provider.
Just take a few moments to review with us any recommendation that might be of interest. You will not get a bill, or consulting fee, and communication will be either by phone or online – no personal visit is necessary – please stay safe!
Call (513) 752-2393 or Text (410) 937-9933 to get questions answered.