If you are a business owner or just a financially responsible individual, you may be familiar with tax credits, but if you are not aware, this might be the ideal time for you to find out about some of the benefits that you might have been missing out on when it comes to your tax bill, or trying to get things done (like building anything ranging from an addition to your home – to a new strip mall in your city).
Prominent consultant, Preston Byrd explains: Tax credits refer to a deduction that is subtracted from the amount due from a taxpayer. A tax credit might be afforded to a taxpayer for different forms of tax obligations, such as that of an earnings tax, certain costs (such as childcare) or even real estate taxes. Refunds might be returned for tax obligations already paid, in the form of subsidies, or even to motivate financial investment among individuals or businesses. In some instances, tax obligation credits can be refunded for payments made over and above the actual amount of taxes owed.
We hear about tax credits all of the time – largely referring to significant tax breaks and special deals given to real estate developers, sports teams, etc. – to entice them to locate a building or development within one city over another. Preston Byrd, Memphis office explains: Tax credits are an important tool for cutting down on the costs involved with constructing minor or major building structures. Tax credits are almost always used to offset such costs.
The question now is how do you get into the game (no pun intended), and take advantage of the breaks that available to you. The best answer (much like any other business or financial matter outside of your normal scope of knowledge) is to find a qualified professional who knows the ins and outs of the tax laws, and how they might impact your proposed plans or business. A tax credit expert will be able to quickly surmise the most beneficial method of carrying out your business plans in such a way as to maximize your ability to utilize tax credits to cut your costs over the short and long terms.