Having just one powerful idea that saves your clients LOTS of money each year can give you the value you need to charge premium fees.
The funny thing is, these tax breaks belong to your client – but they may not be getting them. This allows you to swoop in, recommend a few tweaks and Voila! More money in their pocket!
One of the most overlooked tax breaks is the Sec. 199 Deduction. More businesses than you think qualify. Here’s how it works:
Tip Number 1: See if your client qualifies. Millions of businesses operating in various industries and professions can take an extra 9% deduction (phantom expense) right off their business or personal return.
Tip Number 2: Multiply threshold amount by 9%.
The deduction is super easy to calculate (and estimate) and you can even go back and amend to get cash refunds for taxpayers.
This strategy is so powerful, you can focus just on businesses qualifying for the deduction and hit the ground running to sell premium fee planning engagements. It’s what Damon Y used to sell $27,400 in tax planning fees in just 4 months:
4 months ago I earned my CTC {online}. Since then I’ve earned $27,400 from tax plans and amending tax returns because of mistakes and missed opportunities. As a result of CTC, I believe I’m 10 times better as a professional than I as at the beginning of the year.
Needless to say I excited about the result! I really enjoy doing the tax planning and am thrilled to be making lots more money!!!
People love giving me money.”
Damon Y. Wake Forest, North Carolina
What type of companies are eligible for the Section 199 deduction? Most professionals know that manufacturing business in the US qualify, but don’t forget construction, engineering, software, architecture, film production, electric, gas and water, food processors, and handlers of agricultural products also qualify.
How is it Calculated?
The deduction is the least of three amounts for 2012 and beyond:
9% of Qualified Production Activities Income (QPAI)
9% of taxable income
9% of qualifying wages
