Tax, Accounting and Business Consulting

  Cost Segregation There is a big hype in the tax market that everyone can save bunch of taxes by doing cost segregation. Is it correct or they are selling their stuff? Fist let’s understand what cost segregation is and what it does for you. What is cost segregation Cost segregation is separating value or cost of a real estate property from the actual structure of the building. It is a process that separates add-ons that are installed on top of the building. In other words, those other assets which can be separated from the building, the can be separately replaced and can be easily differentiated from the property. Examples are cabinets, kitchen tops, floorings, fence, landscaping, sometimes windows, doors, electricity, appliances, and some fixtures and so on. By separating these values, you can take bigger depreciation or faster write offs on those non-real estate assets with in 5, 7 and 15 years. On the other hand Real Estates are depreciated at slower pace for tax purpose....

  Oil and Gas Tax Incentives Oil and Gas is the largest industry in the US economy and contribute about 8% to US GDP and supports more than 10 millions direct and indirect jobs. In spite of new natural energy is in rise this industry is still looking strong enough for more years to come until another form of energy completely takes it over. There are many benefits of investing in this industry, to name a few High return on Investment opportunities Passive income treated as active income Diversification of income Tax Incentives I will focus on tax incentives in this article while touching other aspects in brief time to time. Tax rules are same for this industry and apply equally but there are few incentives provided by the tax laws that oil and gas business can take advantage of. Income from Oil and Gas can be active As per tax rule, if you do not participate in a business, that is considered as passive income. In case of income that will not make any difference, b...

 Marketing Mantra Marketing is generally views as the activities a business conduct to promote the buying or selling of its product or services. In other words it is a process by which business sends out the message to the customers or prospective customers about the availability, price, and usage of the product for their information so that customer can be aware of the availability of the product in the market, its usability and the target customer can make buying or selling decision. On high level, I look at marketing as two faced phenomenon, short term marketing and brand creation. Short term marketing can be done via fancy ads and paid promotions that will create you market for a short run that can make you money and bring you clients. And brand creation gives your sustainability and growth. Both have equal values. Let’s think about short term marketing strategies, will short term marketing sustain your business? Will it bring your business the clients you expected? Will it sat...

How to Manage Stress !                     What is stress? WHO says “Stress is a natural human response to a challenging or threatening situation that causes a feeling of mental tension or worry. It can be emotional or physical, and can be triggered by many different events or thoughts.” In other words stress is simply a negative mental state of an individual. Generally stress is felt when the situation takes a turn than expected in the mind. It is actually mental phenomenon. Our expectations in the modern world are governed by various external factors including the eagerness to acquire more comfort or to achieve ample resources in our lives. In fact achievement is a never ending process. No one can achieve things they want, as desire is changing all the times. The competition to surpass others and the lack of clear purpose in life are the main reasons for stress and anxiety in this competitive economic world. In a sense, ...

Tax Planning Tax planning is the analysis of current financial situation of a business, individual or any other entity to ensure that all the financial and non-financial elements work in harmony to minimize the tax burden in the current year and future years to maximize the income of the shareholders, owners or the individuals. Tax Preparation Vs Tax Planning Most of the time people are confused tax preparation with tax planning. Tax preparation is done to report income and pay tax and can be done by anyone. Even the software like Turbo Tax, HR-block or Liberty Tax can do it for you.  Tax planning in the other hand is done round the clock and needs an expert who has intensive knowledge of tax laws, recent tax law changes and has been in profession for many years and has been dealing with  complex tax scenario and situation and also have successfully worked on such situations. Planning: overview Tax planning is not only about reducing tax for current year, but it is a holistic ...

           Can you avoid taxes – Yes, is it legal . Yes you can avoid tax it is legal but however evasion of tax is illegal. The US income tax system is based on voluntary compliance. Under US tax laws it is taxpayer’s responsibility to report all the income. Let’s understand the concept of tax avoidance and tax evasion under this concept. Tax avoidance is planning your taxes in such a way that you pay minimum or do not pay at all by taking an action to lessen your tax liability and maximizing after tax (take home) income. Tax evasion in the other hand is failure to pay or a deliberate underpayment of taxes by hiding your income or inflating you expenses or intentionally presenting incorrect information or not reporting the income or other information that are required to report under the law. Tax evasion is criminal offence. How do you avoid taxes? US Tax laws has provided various tax provision to lower one’s taxes under the law either you are...