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Tax Incentives for the Financial Services Industry

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Financial services firms operate in an increasingly complex environment shaped by technology innovation, regulatory requirements, facility investments, and global operations. As organizations invest in new platforms, processes, and business growth initiatives, valuable tax-saving opportunities are often overlooked.

KBKG helps financial services companies identify and maximize tax incentives related to software development, fixed assets, building improvements, transfer pricing, and business expansion projects, with services like Research and Development (R&D) Tax CreditsRepair / Asset RetirementCost Segregation / Fixed Asset, Negotiated Incentives, and Transfer Pricing.

Our experienced team works to uncover additional savings, improve cash flow, and help firms maximize available tax benefits.

Financial Services Industry Tax Saving Opportunities

Cost Segregation for Buildings & Improvements

Any building acquisition or/and improvements over $1.5M should be reviewed for proper classification of the individual components for tax depreciation.

Repair vs. Capitalization Review §263(a)

Taxpayers often capitalize major building expenditures that could be claimed as current year deductions for repairs and maintenance such as HVAC units, roofs, parking lots and more.

Fixed Asset Review

Evaluating a company's entire fixed asset schedule to identify assets that can be optimized for federal and state tax purposes. Taxpayers utilizing the book method of accounting for tax are not maximizing their available deductions.

Research and Development (R&D) Tax Credit

Federal credit worth approximately 7% to 10% of qualified research expenditures related to designing, developing and improving processes, formulae, and software. State R&D tax credits may also be available, allowing eligible companies to maximize their tax benefits.

Transfer Pricing

Cross-border transfer prices drive how much income tax a multinational company pays by country. Transfer pricing regulations apply to the intercompany prices of goods, services, royalties, and loans across all industries. Many companies can realize significant tax savings through transfer pricing strategies.

Negotiated Incentives

KBKG helps businesses secure and maximize state and local incentive programs that reduce project costs and improve long-term return on investment.

Financial Services Industry Tax Insights

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