Many businesses across California that reap the benefits of business taxes are local wineries. Operating a business can be difficult but there are a series of tax incentives that are available to help California’s wine industry thrive.
Some of the most common incentives available for wineries in California include tax liability lowering incentives. Tax laws change frequently and some of the tax incentives that are available for California wineries can include items like cash methods for accounting where payments are recorded as soon as they’re received and expenses are recorded when they are paid. Using this type of method ensures that wineries earning under $1 million in revenue can make deductions from wine as soon as it is sold.
Accelerate deductions are also available for wineries to decrease their tax liability while claiming deductions that apply directly to their situation. Separating depreciating assets from your property and recovering tax savings like equipment sheds, bridges, roads and other aspects of land for operations can be considered here.
Business structure changes such as establishing wineries as a C Corporation will decrease tax rates for these businesses as well. C Corporation tax rates will reduce taxation to 21% from the maximum rate of 35% that many wineries face without this business structure tax solution.
If you are interested in tax services as a winery owner, we can help you determine the best options for managing tax liabilities and for managing your winery over time. Rather than facing multiple errors when filing for your tax return or paying your taxes without learning about the various improvements that could be made for your tax liability, we can assist you today.
Contact us now and we can assist you with available tax improvements for your business.
This article was written by Alla Tenina. Alla is one of the best tax attorneys in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.