The world of corporate tax is ever growing and evolving, and we’re not just talking about the 2018 tax changes. With the consistent introduction of varying layers of tax, from Federal to State & Local, the complexity grows. That’s where we come in. Please give us a call. ...read more

Many  taxpayers looking for a quick refund often fall victim to the rapid refund hype.  The problem is that this costs the taxpayer too much in fees to obtain a refund quicklly Rapid refund is a system whereby the taxpayer is given his/her refund the same or next day they file a tax return.  The tax preparation firm, such as H & R Block charges the taxpayer to prepare and transmit the return as well as interest on the refund from the date the return is filed to the date when the refund will be issued by the IRS.   The rate of interest charged on this refund amount can be extremely high.  In reality, you are paying interest on your own money for the priveilege of getting a refund a few days earlier than if you Efiled with direct deposit. My firm recommends the Efiling method with direct deposit to your account.  Refunds usually take a week to two weeks.  My charges for tax preparation are much less than an H & R Block and you aren't paying interest on your own money.  This makes much more sense for you and saves you a lot of money. ...read more

Savings from Cost Segregation studies can be relatively substantial for properties or improvements placed in service within the last 15-20 years.  A study completed on a property previously placed in service does not require amended returns. You can simply file a form 3115 (change in accounting method) with your 2007 return and we can complete those forms for you! The increased accumulated depreciation from the study is taken as a deduction on the 2007 return. As of 2002, the IRS automatically approves the 3115 so there is no need to pay the $2,500 filing fee. Following are some examples of recently completed cost segregation studies on properties placed in service in prior years: Building TypeCapitalized CostIncrease in Cash Flow (Years 1-5)481(a) AdjustmentProject Specs/Year PIS5-Yr7-Yr15-YrManufacturing Facility$5,988,393.00$209,097.68$613,481.94New Construction 1988-20060.38%10.88%1.40%Shopping Center$3,013,177.43$96,010.00$313,024.00Acquired 19927.00%0.16%13.32%Self Storage Facility$3,415,973.00$86,263.00$238,678.00New Construction 19975.94%0.02%5.94%Shopping Center$2,911,815.00$140,554.00$414,971.00Acquisition and New Improvements - 199813.95%0.26%7.53%Light Manufacturing Plant$4,962,753.30$355,074.33$1,001,104.20New Construction 1998-19994.95%18.06%7.71%Hockey Training Facility$7,180,359.00$242,684.60$672,510.30New Construction 19980.08%12.90%6.31% Back BAy Accounting and Tax can help you maximize the Cost segregation benefits for substanial tax benefits in 2007. Year end 2007 is almost here so give us a call! Jerry Mansfield, Back Bay Accounting and Tax, LLC 617-578-0800 ...read more