See full version: Don; t Blame Big Business for Paying Zero Tax
In other cases, timing becomes a key factor. For an industrial giant like Boeing, tax provisions often allow accelerated depreciation, or immediate expensing of certain investments in its business, and that can artificially depress taxes due in certain years. Later on, the fact that a company got to claim those deductions faster than it otherwise would have catches up with it, and taxes in later years are higher than they would've been under normal tax rules. more
Debate over the tax preference for big businesses reached a height during the run-up to tax reform becoming law. The cut in corporate tax rates from 35% to 21% was much larger than the one to four percentage point reductions in income tax bracket rates for individual taxpayers. Moreover, unlike the temporary nature of individual tax cuts, tax reform slashed corporate taxes permanently.
Yet many of the provisions that make it easiest for companies to reduce or eliminate their tax bills don't get nearly as much attention. Often, it's an industry-specific tax break that can make a huge difference for a small but significant number of businesses. Whether it's research and development credits for pharmaceutical and technology companies, ethanol fuel credits for agriculture and energy businesses, or low-income housing credits for real-estate developers, you'll find a host of targeted tax deductions and credits that often make their way through Congress and the White House quietly but effectively.
Every year, taxpayers get angry when they discover that high-profile companies have found ways to zero out their tax bills for the year. In the early 2010s, industrial behemoths like General Electric (NYSE:GE) and Boeing found themselves in the crosshairs of public criticism for paying zero tax, while today, Amazon.com (NASDAQ:AMZN) is in the same boat. Such stories always create controversy because individual taxpayers don't have the same latitude to find as many tax-saving measures as corporate taxpayers apparently have.
It's easy to criticize big corporations for finding ways to reduce or eliminate their tax bills. But companies are only doing what you or anyone else does when filing their taxes: finding the best way to pay as little in tax as is legally possible. In that light, the real culprits for allowing big businesses to pay nothing in taxes are the lawmakers who enact the provisions that make it possible.
The B&O tax is reported and paid on the excise tax return or by electronic filing. [links]
The major B&O tax credits are: [links]
The B&O tax rate varies by classification. Once you know which classification your business fits into you can find the rate that corresponds to your classification on our list of B&O tax rates. If you're not sure of your classification, see our tax classifications for common business activities page or our list of tax classification definitions. here
Credits are amounts that have been paid to the Department of Revenue and are not due or are granted by the Legislature for a specific purpose. Credits are subtracted from the B&O tax due on your excise tax return. Credit definitions provide detailed instructions for reporting credits on the tax return. here
The state B&O tax is a gross receipts tax. It is measured on the value of products, gross proceeds of sale, or gross income of the business.
The Performance / Active Yacht Ownership Program can dramatically lower costs over a short time by simply applying these tax laws. An owner can legitimately benefit from substantial tax benefits to create equity in their new yacht. We urge potential buyers to seek the advice of qualified tax advisors. here
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The tax benefits must be carefully planned and documented to make sure that the business activity can withstand scrutiny. There are very specific rules and requirements that need to be complied with in order to meet the standard of actively operating a business for profit and taking tax advantages. here
Whatever your reason, Catamaran Guru’s team of experts can set up your yacht charter business in compliance with tax authorities to suit your individual financial and personal goals.
The original target of this legislation was much needed tax relief for small businesses – and millions of them are actually taking action and getting real benefits. So, if you are in the market for a new yacht, the Section 179 rule should definitely be a part of your yacht-buying strategy.
People seem to think that the Section 179 deduction is some complicated tax code, but really it is not. Essentially, Section 179 of the IRS tax code allows businesses to deduct operating expenses and depreciate the qualifying equipment purchased or financed during the tax year. Typically, when a business buys new equipment, the purchase price can be depreciated using the MACRS scale which is an accelerated depreciation schedule.
The goal is to structure your boat business in such a way that you have the intent and ability to make a profit! What you CANNOT do, is structure this business with a flawed business plan of “limited charter” and purposely run it at a loss to avoid wear and tear on your boat while offsetting the cost of ownership with business tax deductions. You CANNOT “pretend” to be in business! However this program, when done correctly, offers the least expensive alternative to own a boat!