In the restaurant business, we love to think that it is all about the food. Lately, more of us are realizing that it is also about the financials. Some of us understand waste reduction. And when you combine all of those elements together at this time of year and the sum is an annoying the letter word: IRS.
Yes, it is tax time again. However, this year Synergy Restaurant Consultants has a great new partner in the fight against encroaching taxes, Scarpello Consulting.
The key here is to maximize restaurant business cash flow via Cost Segregation. Conducting Cost Segregation Studies has proven to be a highly effective means of lowering income tax liability. Yes, I perked up when I realized this, too.
There is a IRS industry directive concerning cost segregation studies for restaurant business. Do you realize that many asset components in your restaurant may be depreciated over a 5 to 15 year recovery period instead of the old 39 year straight line approach? That kind of accelerated depreciation allows you to reduce current tax liability and significantly enhance cash flow.
Bottom line: It improves your bottom line.
And no, it is not too late! You can actually run a cost segregation study on properties you own dating as far back as 1987! The IRS form 3115 (automatic change in accounting method) can be filed to receive a sort of ‘catch up’ tax deduction for the current year. And you do not have to amend any prior returns!
This can lead to a significant tax reduction this year.
Obviously, this calls for specialized knowledge in a spectrum of things ranging from tax law to engineering and construction issues. So, in order to fully take advantage of this you need the expertise brought to you by Synergy and our friends at Scarpello Consulting.
Call us today to discuss the possibilities of a significant tax refund.