New Rules- Take another look at R&D
November 4, 2010 | 
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For many, the Research and Development (R&D) tax credit proves to be a driving force behind R&D activities. And for good reason- claiming R&D credits can mean tremendous tax savings for businesses. For many others the credit is only a dream as the Alternative Minimum Tax (AMT) rules limit the amount of the credit that can be currently used to little or nothing.
In previous years, falling subject to the AMT rules limited a taxpayer’s ability to take advantage of certain credits and deductions, including the R&D credit. You could claim the R&D credit, but could only carry it over for potentially future year’s use (when you were not subject to AMT).
However, in 2010, the R&D credit is not subject to the AMT rules. The new tax law changed this in 2010 for an eligible small business (ESB). An ESB can use 2010 General Business Credits to offset AMT. This will allow many business owners who were unable to take advantage of the credit until now to utilize the tax benefit of performing R&D activities.
If your business is improving its products, services, or processes, this is an especially important year to look at R&D credits.
Questions?
2010 Tax Tips Series- Hiring?
October 29, 2010 | Subscribe to our RSS Feed
We are moving into a period of economic recovery and growth for businesses. This is a good thing, but for business owners, this often means higher taxes. As your tax advisor, we are always watching for opportunities to help you lessen your tax burden. There are more tax credits available in 2010 than in many recent years for small and mid-sized businesses, but taking advantage of many of them requires proper planning.
Steve Albert, Managing Partner of our Tax Practice, provides weekly insight here: This week we talk specifically to businesses in hiring mode.
For more information on tax credits for businesses in hiring mode, check out the related posts below:
IRS Scam Alert
October 25, 2010 | Subscribe to our RSS Feed
The IRS has issued a warning about a fraudulent scheme targeting Electronic Federal Tax Payment System (EFTPS) users. The scheme uses an e-mail claiming that the user’s tax payment was rejected and directs the user to a website for additional information. The website contains malware that will attempt to infect the user’s computer.
The IRS does not initiate taxpayer communications through e-mail. If anyone receives a message claiming to be from the IRS or EFTPS, do not reply to the sender, access links on the site or submit any information to them. Report and identify this or other phishing, e-mail scams and bogus IRS websites by forwarding the e-mail or URL information to the IRS at phishing@irs.gov.
Questions?
tammy.schneider@glassjacobson.com
Going Green?- Start thinking 2011
October 20, 2010 | Subscribe to our RSS Feed
For businesses “going green,” you may be eligible for the Green Building Tax Credit from the state of Maryland. You are eligible for the program if your are constructing or rehabbing a building that conforms to specific standards intending to save energy.
The program credits have all been allocated for 2010. However, the state has indicated that there will be money available in 2011. Stay tuned, as you will have to apply in advance for these credits.
If the credit you receive is more than your state tax liability, the unused credit may be carried forward for the next ten years.
Questions?
Tax Breaks for Employers Providing Commuter Benefits
October 11, 2010 | Subscribe to our RSS Feed
For employers who provide their employees with commuter benefits, you may be eligible for the MD Commuter Tax Credit.
To qualify for this credit:
- The business must pay a portion of the cost of travel between the employee’s home and the workplace.
- Qualified commuter benefits include the cost of transit (tickets, passes, vouchers, farecards, and smartcards all qualify).
- Travel must be on a qualified mass transit vehicle/system or in a vanpool (vanpool vehicles must seat at least 8 adults).
- “Guaranteed Ride Home” and “Cash Out” parking programs are also considered qualified commuter benefits.
The credit is worth the lesser of 50% of the cost of providing commuter benefits or $50/month for each employee.
Questions?