Texas has re-introduced an exciting new tax incentive, the Texas Job and Investment Tax Credit (JETI) under Section 403. This incentive program is intended to replace the popular Section 313 program that expired on December 31, 2022, and has been fine-tuned to reduce the amount of tax previously abated under its predecessor, limit eligible projects, and add oversight into the abatement process.
Texas has re-introduced an exciting new tax incentive, the Texas Job and Investment Tax Credit (JETI) under Section 403. This incentive program is intended to replace the popular Section 313 program that expired on December 31, 2022, and has been fine-tuned to reduce the amount of tax previously abated under its predecessor, limit eligible projects, and add oversight into the abatement process.
Reality is that nobody likes taxes. Let's face it - if you moved from out of town into our Lone Star State, chances are that you had sticker-shock when you saw the property tax rates. And if you haven't claimed your Homestead Exemption, you're already on the downside. Fortunately, there are a few things you can do to keep your property taxes in check - and keep some of this money in your pocket.
As you go through your regularly-scheduled year-end financial review - and if this is your first time, congratulations on getting it on the schedule! - it’s worth remembering that Uncle Sam does provide a deduction for any and all real estate taxes, as well as interest, that you have paid during the year.
One of the most common tax benefits of home ownership (outside of mortgage interest) is the Homestead Exemption for your primary residence. Surprisingly, it is often ignored and/or misunderstood by homeowners. Simply put, the Homestead Exemption reduces the taxable value of your home, resulting in a lower property tax bill.
This isn’t meant to be another post discussing COVID-19 medical issues, rather it is meant to discuss the business issues created by the pandemic. Specifically, unless you are in the business of selling medical supplies, groceries or toilet paper and Lysol, you are probably seeing a major drop in your business volume.
How are you approaching this unprecedented Economic Shutdown? We want to encourage you to reach out to your lenders, landlords and key suppliers TODAY if you will be experiencing a cash flow shortage.
We have taken a proactive step in reaching out to several lenders (banks and brokers alike), as part of our catching up. They have all indicated that while they don’t yet have a formal plan in place, they would find working with a customer much easier if that customer came to them prior to missing payments.
Similarly, while banks are aware that many of their customers will not make their loan covenants for the next 4 quarters, they would prefer and even expect you to come in now and seek a loan modification. Likewise, approach your landlord now if making your rent will be problematic. Work together to form modifications to your lease payments. Don’t miss your rent payments and then wait to see what happens.
Be proactive, it will be greatly appreciated by lenders, landlords, and suppliers. They all know what is happening, and they know it is due to forces outside your control. They will be much more willing to work with those who come to them now!
In summary, we believe communication is key to survival right now. Lenders and landlords will be more likely to work with you if you are willing to voluntarily communicate with them.
With a great deal of input from Bernard Abercrombie - CPA at Haynie and Company. And yes, our accountant!
