Why You Should Outsource Your Tax Credits
Big ideas often require bigger budgets. For every project you take on, there are architects, engineers and contractors to pay–all cutting into your bottom line. Although many developers look to offset their development costs with tax credits, we see far too many that waste time and money in the process. That’s why we say to all our clients: you keep building and leave the tax crediting to the experts.
Chances are, your CPA firm hasn’t dealt with these types of tax credits before. Although your accountants are certainly qualified to pursue tax credits for your project, any time they spend doing so is time they may not spend in research or providing other critical services to your business. Trusting your tax credits to the experts allows your team to focus on keeping your organization in a strong financial position.
Without an expert knowledge of the process, you may be unsure where to begin looking for credits or even which ones you’re eligible to receive. A tax credit consultant is able to evaluate your project’s feasibility and pursue the tax credits that make the most sense for it. Your tax credit consultant will also check every possible avenue for credits to ensure you maximize your building project’s potential while minimizing your financial risk.
Tax credits aren’t a one-time ordeal. In order to keep your project in good standing with state and federal governments, there are inspections to complete, compliance standards to meet and paperwork to submit nearly every step of the way. For an in-house team, this amount of work is often overwhelming and may even cause them to lose their tax credits.
If tax credit consultancy isn’t their specialty, your accounting team is unlikely to invest significant resources into finding every possible credit for your project. Tax credit consultants, however, will ensure your firm receives the maximum possible funding with every development. They’ll pursue every avenue, such as historic tax credits, new market tax credits, or low-income housing tax credits. With increased funding on your side, you’re free to pursue larger, more ambitious projects.
Managing tax credits for a real estate development is far from straightforward. It requires time and expertise in order to find the credits that will help bring your project to life. The Sunflower Development Group team is on hand to evaluate your development and provide expert tax credit consulting services that get your project moving.
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