Tax Strategies for Breweries: Leasing vs. Buying Kegs, Choice of Entity, R&D Credit, Excise and Other Taxes
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Tax Preparer
- event Date
Thursday, July 6, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
110 minutes
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
This course will address general business decisions, the taxes paid that are specific to beverage alcohol industries, and the incentives available for brewery owners and advisers. Our brewery experts will focus on steps to minimize taxes and maximize profits for these businesses.
As a leader with the firm’s tax solutions group, Mr. Knutson assists both closely held and public clients with specialty tax services. His extensive experience includes engineering-based cost segregation studies, research and development tax credits, 382 studies, transaction cost studies, stock basis studies, and 280G analyses. Many of Mr. Knutson's clients are in the real estate, manufacturing, and technology industries. He often speaks at industry conferences on tax-related issues. Recently, Mr. Knutson spoke at the Software Colorado conference on tax reform and at the Financial Executives International conference on the top tax-planning ideas.
Mr. Harbin has worked in public accounting since 2012. He specializes in tax credits and incentives, including federal and state research and development (R&D) tax credits, research and experimental expenditures (IRC Sec. 174), and employee retention tax credits.
Ms. Steele has significant experience helping companies identify, increase, document, and support claims related to R&D credits. She works with clients from a wide range of industries, including manufacturing, agribusiness, food and beverage, technology, aerospace, and forest products. She primarily works with S corporations and partnerships in the Pacific Northwest region, and understands the unique opportunities and challenges facing these companies.
Mr. White has over 16 years of experience specializing in ASC 740 and associated income tax footnote disclosures for financial statement audits, federal and state tax compliance, and consulting services to mid-market companies, private and public companies, and startups in a variety of industries including Consumer and Industrial Products (including manufacturing and restaurants), Life Science, Technology, and Real Estate. He also has experience in Merger and Acquisitions and individual tax consulting for high net worth individuals and the owners of many clients he works with. He also has significant, non-tax experience in assisting private companies setting up business plans and financial/accounting goals within organizations. Mr. White works closely with many of his small business clients' owners and investors.
There are unique tax opportunities available for breweries. During the pandemic, certain brewery business models thrived while others suffered greatly. Breweries are ideal candidates for recent economic relief and powerful existing tax incentives.
Tax problems can stack up quickly for breweries. Many materials, such as kegs, must either be leased or purchased, new product lines developed, and barrel-aging often prevents the immediate opening of these businesses. Simultaneously, breweries are prime candidates for cost segregation, whether leasing or owning property, and research and development credits may be available for new lines and brands.
Because they operate in a highly regulated industry, breweries are subjected to additional layers of tax, including excise alcohol tax, sales, and specific state and local taxes. With interest in this industry continuing to grow, tax practitioners need to stay abreast of the unique taxes, incentives, and caveats that apply to this regulated environment.
Listen as our panel of craft beer business and tax experts points out tax considerations of opening, exiting, and operating a brewery.
- Breweries: an introduction to the industry
- General business strategies
- Tax saving opportunities
- Cost segregation
- Research and development credits
- Pandemic relief
- State, local, and other taxes
- Best practices
The panel will review these and other critical issues:
- Strategizing new lines, equipment purchases, and acquiring kegs
- How breweries are ideally suited for the research and development credit
- Handling taxes applicable to the beer industry, including alcohol excise and sales and use taxes
- Structuring considerations for craft brewers
- Pandemic relief available to beer makers
- New federal rules for the treatment of R&D expenses, and the strategies and credits breweries can use to reduce taxes
Learning Objectives
After completing this course, you will be able to:
- Identify specific processes qualifying for the R&D credit
- Determine specific steps breweries can take to minimize taxes
- Decide when buying could be better than leasing kegs
- Ascertain when organizing an LLC may be a viable structuring alternative
- Identify specific projects and processes that may qualify as R&D
- Field of Study: Taxes
- Level of Knowledge: Intermediate
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.
Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
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