White Nelson Diehl Evans is dedicated to providing high quality, client focused tax, financial accounting and advisory services to assist our many customers in the food and beverage sector:

  • Manufacturing and Processing
  • Food & Beverage Distributors
  • Bottling Companies
  • Groceries / Markets
  • Restaurants
  • Import and Export
  • Growers
  • Seafood
Research & Development Tax Credits in Food Processing

The food industry is going through dynamic changes due to the introduction and adoption of new dietary trends. Organic was once the catch all for all non-traditional food products, but now consumers are demanding gluten-free, GMO-free, preservative free, low carb, low fat, locally grown as well as sustainable packaging. Even pet foods are mirroring this trend into less traditional products and the industry leaders are working hard to stay ahead of the curve. These new dietary trends yield a variety of new products, however all this innovation is expensive.

That is why the Research & Development (R&D) tax credits can mean more money for your business to improve its own product innovation, manufacturing processes, or hire new employees. Many companies are either unaware of the available tax credits, don’t understand what qualifies for the credit or lack the expertise and knowledge to gather the needed data in order to submit and receive such tax credits.

White Nelson Diehl Evans works to insure that our clients take advantage of R&D tax credits by educating them on the eligibility requirements, assisting to identify those elements of a business that qualify for the credit and finally helping capture the costs, calculate the credit and provide the necessary documents. If your company is performing work that you believe may qualify, consult any one of the many qualified tax specialists our team. The potential tax savings make it well worth the effort.

Charitable Donation of Food Inventory

Many businesses incorporate cause marketing as part of the company’s culture by providing sponsorships and other charitable donations in support of a regional or national cause or foundation. An easy and low cost or no cost option for supporting a local charity is through the donation of inventory. Such donations can enhance a company’s brand, heighten customer loyalty, boost a company’s image and improve employee morale. It can also free up inventory space and eliminate expensive storage costs or liquidation fees. This option can be particularly effective for an industry that manages perishables goods.

To encourage businesses to donate, the IRS established tax deduction rules to guide what qualifies as a deduction and the value that can be deducted. Generally, the value of the inventory deduction is the smaller of market value or cost basis of the items. The inventory must have a cost value in the business’ beginning inventory value to have value in the deduction. The inventory must also be necessary in the normal course of business for the charity.

For food inventory, the food must be consumed by the ill, infants or the needy and those groups must be serviced by the charity. In other words, the food cannot be donated to feed the charity’s staff or family. Donating food to a homeless shelter where the homeless consume the food would qualify as a deduction. Obsolete inventory can also be donated if it still retains some value and will be used by the charitable organization. With White Nelson Diehl Evans, you have a team that understands your business, your industry and can provide customized solutions backed by the resources of one of the largest Orange County CPA firms.

Perspectives
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Tax Planning Guide

At White Nelson Diehl Evans, we know how difficult it is to stay ahead of the complex and dynamic tax laws. From new standards changing revenue recognition rules to the impact of the Affordable Care Act, our goal is to help our clients stay in front of tax issues that impact your bottom line. To help in this effort, we have put together a comprehensive tax-planning guide and it’s available to download for free.

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Partner Testimonial

“The food and beverage business is an important industry for WNDE. We recognize the many unique challenges that arise, from the farm to the market, or table, and strive to deliver audit, tax and advisory services that help our clients, present strong financials, and maximize net after-tax returns.”

Gary Belz Tax Partner