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The purpose of our Newsletter is to keep you informed and up-to-date on the latest regarding the R&D Tax Credit, Hiring and Location Tax Incentives (WOTC/HUD Zone/Ticket to Work), Grant and Other Non-dilutive Funding Generation, the IC-DISC (US Exporters' Tax Incentive), Cost Segregation Studies, other tax related issues, business development and personal development.
If you find the Newsletter helpful, you may want to forward it to a friend. Just click below.
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Still Time for an R&D Tax Credit Study! |
2010 Best Year Ever for an R&D Tax Credit Study
If you have extended your 2010 tax filing, there's still time for Paradigm to perform an R&D Tax Credit Study before the September 15, 2011 deadline.
The Small Business Jobs Act created a great opportunity to take advantage of the R&D Tax Credit. Previous to the passage of the act, most General Business Credits could not reduce the AMT (Alternative Minimum Tax) but now General Business Credits generated in the year 2010 can reduce AMT for 2010. The great news is that the R&D Tax Credit is a General Business Credit.
The act went even further; allowing taxpayers to carry back unused credits up to 5 years instead of just one and allowing taxpayers to reduce the AMT in the carry back years as well.
Consider the following example:
ABC Manufacturing is an S-Corp. It has 1 owner, and has been paying AMT for 3 of the last 5 years (2005, 2008, and 2009). The other two years, he reported a "net operating loss" or NOL. In 2010, Paradigm calculates the Research and Development Tax Credit to be $50,000.
In 2010, ABC Manufacturing pays only $5,000 in taxes, which the R&D Tax Credit offsets for 2010, resulting in a taxable liability of zero. The owner then takes the remaining $45,000 and carries it back to the other years where AMT was paid in the amount of $15,000 in 2005, $10,000 in 2008, and $20,000 in 2009.
In this example, the 2010 R&D Tax Credit is carried back to those three years resulting in a check back to ABC Manufacturing of $45,000 plus interest from the Internal Revenue Service. It can be as simple as filling out an IRS form to receive your tax refund.
Click here to contact Paradigm to learn how you can benefit from a 2010 study. |
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Grab Tax Savings While You Can! |
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Opportunities are there for Small Business Owners
Small business owners need to be aware of a number of tax law changes that could have an impact on their businesses. Through new legislation and extension of previously enacted laws, small business owners have been given numerous opportunities to significantly lower their tax burdens. We will focus on some of the most important provisions. . .
Click Here to Read the Entire Article: |
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Every month we'll be providing merger and acquisition opportunities in this section of the newsletter.
Click on the links below to learn more about each opportunity:
Looking to Acquire an Electronics Manufacturing Company
Any questons? Contact Richard Brown at rbrown@crestviewcapitalllc.com. |
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Valant & Company's Leaderhip Fundamental "Formalizing the Vision in a Written Statement" |
Editor's Note: We are pleased again this year to feature valuable how-to advice and counsel from one of America's leading business performance improvement experts, Laurence B. Valant, President & CEO of Valant & Company. Here and in future newsletters, we will be providing our readers with excerpts from Larry's new book, "Lead and Manage! The Definitive Guide For Getting the Results You Want", which he co-authored with Valant & Company Partner Gayle W. Hustad. "Lead and Manage!" is available through Barnes & Noble, or can be ordered at www.valantco.com.
Formalizing the vision in a written statement
Leaders must understand the power of their vision to impact their company's bottom line. Once the previous leadership fundamentals are defined, it is the job of the CEO or the division leader to formalize, in writing, this vision for the company. This written statement will define quantitatively what success looks like. This formalized statement says, "Here is where we will go. Here is how we will get there."
The leader's written vision must include quantitative deliverables and the broad timing of their accomplishment. Everyone in the organization must be able to understand what is required for the successful completion and implementation of the vision. The deliverables must be quantitative, specific in terms of revenues and include the key metrics.
Guidelines for formalizing the vision statement:
- Broadly state the direction of the company. The strategic plan and business plan will provide the specificity.
- Break the deliverables into five-year periods.
- Provide enough information that others can translate this statement into the tools required to guide the business: the strategic plan, the business plan, the capital budget, and the operating budget.
- Quantify your deliverables so that everyone in the organization can understand and commit to working toward clearly defined goals and objectives.
- Update quarterly. You will constantly gain more information and recognize changes in your target markets and the overall economy. Your formal vision statement must be updated regularly to reflect new insights.
- Use your formal written statement to broadly define the requirements for key management positions as well as business unit leaders and their key direct reports.
- If you are considering a stock option plan, award available shares based on actual incremental residual income performance.
Next month's installement is titled "Leadership and Management: Misunderstood Concepts." |
One of our missions as a company is to educate companies and CPA firms about the benefits of great tax incentives such as the R&D Tax Credit, Hiring and Location Tax Incentives (WOTC/HUD Zone/Ticket to Work), Grant and Other Non-dilutive Funding Generation, the IC-DISC (US Exporters' Tax Incentive), Cost Segregation Studies, and other niche tax incentives.
In addition to these services, Paradigm's Intellectual Property Attorneys provide patent services, tax controversy legal services, as well as audit defense services.
This newsletter is one medium we use; we also conduct CPE Webinars and make presentations to CPA associations and manufacturing associations.
Sincerely,
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