How Tax Shields Work for Small Businesses in 2023

A tax shield is a legal way to reduce your tax liability through various means, including charitable donations, a mortgage, and depreciation. For example, a business is deciding whether to lease a building or buy the building. Taking on a mortgage for the purchase of a building would create a tax shield because mortgage interest is deductible to a business. If the business puts the tax shield benefit from the mortgage into the decision, the tax benefit of a mortgage might make the decision easier. Assuming depreciation totaled $20,000 and a tax rate of 10%, the truck owner can subtract $2,000 from his total taxable income.

Potential customers may worry about a US Tax Shield back tax assistance scam, but back tax assistance companies like this can offer legitimate assistance. It’s important to understand the services and solutions available so you never feel as though you were mislead. Read on to learn more about what US Tax Shield does and how this company can work for you.

US Tax Shield Reviews

I called repeatedly with complaints and spoke with Audrina before my IRS meeting. After putting their heads together, they came up with the awesome strategy of “you should get a loan to pay your tax debt”. We paid $29,000 for them to tax shield ignore us for a year and then their big plan is “go get a loan”??? I think we would have done that if we could, and since they were not helping us while retained, we now have a lien which makes getting a loan totally impossible.

• If you receive a notice about a minor mistake on your tax return or that there are deductions you qualify for, it is okay to address these issues yourself or with your tax preparer.
• US Tax Shield requires a minimum tax debt of $10,000 to qualify for services.
• However, it is important to note that the tax benefit of the interest tax shield can vary based on a company’s tax rate, making it more or less advantageous for different companies.
• Assuming depreciation totaled $20,000 and a tax rate of 10%, the truck owner can subtract $2,000 from his total taxable income.

Fees vary depending on the size and complexity of each case. However, you can expect the cost of US Tax Shield services to start at $1,000. According to US Tax Shield, the average customer will pay $4,000 in fees. US Tax Shield may offer a refund if you’re not satisfied with their services or cancel your account . Companies displayed may pay us to be Authorized or when you click a link, call a number or fill a form on our site. Our content is intended to be used for general information purposes only.

What Is a Tax Shield?

I paid $5,000 up front, 1 1/2 years later, USTS got me on a $700/month payment plan after telling me to liquidate my 401K to pay down my balance, which just added to our tax debt. Avoid these thieves at all costs..don’t give in to the fear, these parasites will take your money and run. The benefit of using depreciation with a tax shield is that you can subtract any depreciation expenses from taxable income. These intangible assets can affect your rate of tax and tax expense. There are many examples of a tax shield, and it often depends on the tax rate of the corporation or individual as well as their tax-deductible expenses. It can also depend on the type of taxable expenses being used as a tax shield.