How a retail business saved $32k in taxes with an additional $15k savings
3 highly effective strategies that saved taxes, eliminated non tax deductible debt and increased wealth
What results did we help Arthur achieve?
32k+
saved in taxes
15k+
additional refund
Our diligent efforts and expertise in tax planning and optimization yielded significant results for the client:
a. Total Tax Savings: By amending the client’s tax returns for the past four years, we successfully claimed depreciation for their investment property. This resulted in substantial tax savings, totalling approximately $32,000.
b. Additional Refund: Upon reviewing the tax situation of the client’s spouse, we discovered unclaimed rental losses from the investment property in previous years. By combining these losses with the newly claimed depreciation, we secured an additional refund of approximately $15,000.
Tax Strategy #1 - Expense Optimization
Arthur sought to optimize his expenses and maximize tax savings. Through a comprehensive analysis of his business operations, we identified key areas for cost reduction.
By renegotiating contracts, implementing efficient inventory management, and streamlining the supply chain, Arthur saved $32,000 in taxes. Additionally, our expertise in expense allocation identified an additional $15,000 in savings, resulting in a total tax savings of $47,000.
These strategic measures not only reduced tax liability but also enhanced business profitability, enabling Arthur to sustain growth in his retail business.
Tax Strategy #2 - Deduction Maximization
We helped Arthur minimize his tax liability by analyzing his financial records and identifying areas for tax optimization.
By leveraging available deductions, Arthur significantly reduced his tax burden. Through a thorough review of his business expenses, we identified overlooked deductions specific to the retail industry, resulting in an additional $25,000 in tax savings.
Our expertise in tax codes and regulations enabled us to navigate complex deductions, ensuring Arthur received all entitled tax benefits. With our assistance, Arthur achieved substantial tax savings while remaining fully compliant with tax laws.
Tax Strategy #3 - Strategic Entity Structuring
We recommended a strategic entity structuring approach for Arthur to maximize his tax savings and protect his assets.
By converting his retail business into an S Corporation, we optimized his tax liability through pass-through taxation, saving him $20,000. This approach also provided limited liability protection and increased opportunities for future growth.
Implementing tailored strategies resulted in $32,000 in tax savings and an additional $15,000 through expense allocation, helping Arthur make informed financial decisions and achieve significant tax savings.
We Can Save Your Taxes Too!
Methods Used for Tax Savings:
To achieve significant tax savings for our client, we employed the following methods:
a. Depreciation Claim: By obtaining a depreciation report for the investment property, we accurately calculated and claimed the allowable depreciation expenses. This enabled us to optimize the deductions for the property, resulting in substantial tax savings.
b. Retroactive Amendments: We amended the client’s tax returns for the past four years to incorporate the previously unclaimed depreciation expenses. This allowed us to recoup the tax benefits that were initially missed, effectively reducing their tax liability for those years.
c. Combining Rental Losses: After identifying the unclaimed rental losses from the investment property in the spouse’s prior year returns, we combined them with the newly claimed depreciation. This strategic approach allowed us to maximize the deductions and secure an additional refund of approximately $15,000.
d. Thorough Review and Analysis: Our team conducted a comprehensive review of the client’s tax situation, identifying missed opportunities and potential areas for optimization. By carefully examining past returns, we were able to identify and rectify errors or omissions that could result in significant tax savings.
e. Proactive Tax Planning: We worked closely with the client to develop a proactive tax planning strategy for the future. By implementing effective tax strategies, such as timely recording of rental losses and maintaining accurate records, we aimed to optimize their tax savings in subsequent years.
What Clients Say About Us
We were struggling to understand how to take advantage of the various tax offsets and deductions available to us, but Ace Biz helped us to navigate the complexities of the Australian tax system. Their expert advice and guidance allowed us to save a significant amount on our tax bill this year.
Angelina Johnson
Ace Biz provided us with exceptional tax planning services that helped us to optimize our tax savings. Their team of experts was knowledgeable and efficient, and their customized solutions were tailored to our unique business needs. We highly recommend Ace Biz to any business looking to save on their taxes.
Matthew Chris
Thanks to Ace Biz, we were able to restructure our business in a tax-efficient way, resulting in significant savings. Their expertise in business structuring and tax planning helped us to minimize our tax liabilities while maximizing our profits. We would not hesitate to recommend Ace Biz to any business looking to save on their taxes.
Eddie Norway
The End Result
Through our meticulous analysis, proactive tax planning, and strategic approach, we successfully helped our client achieve substantial tax savings and secure additional refunds. By rectifying past oversights, claiming depreciation, and optimizing deductions, we assisted the client in saving approximately $32,000 in taxes, with an additional refund of around $15,000. Our expertise and dedication to maximizing tax benefits ensured that the client received the full value of their entitled deductions, ultimately enhancing their financial position and providing peace of mind.