As of 2014 data, there were over 2,500 biotech companies in the United States, with 345 of those being public companies, according to research by Statista. Most of them, however, are small enough that everyone knows everyone else’s name. Over the years though, more and more are joining the elite group of firms with FDA-approved drugs in circulation.
Being a sector that has been gradually on the rise, year on year, it needs no telling that the rate of asset recovery must be correspondingly high.
Typically, you’ll find biotech companies situated in geographical clusters, often close to prominent research universities. Here in the US, the biggest concentration of biotechs is in California, mostly in and around San Diego and the San Francisco Bay Area, an area sufficiently served by a reputable recovery solutions vendor.
Most biotech firms grapple with the dilemma of where to take their excess inventory that could arise from a number of drivers, be it restructuring, upgrading their assets and supplies, or even moving. And rather than have the equipment find itself in auction houses and landfills (or sit idle gathering dust in storage that could be used for something better), there are two better options biotech firms could take.
Given the number of smaller biotech firms far outnumbers the giants, this presents a good avenue for the latter to direct their surplus assets which could be useful to their smaller counterparts.
But what many seem to forget is that these assets can also be donated, and that too, comes with its fair share of benefits. The secret lies in finding a reputable high-end consignment vendor to eliminate that headache for you.
In most cases, the vendor visits the premises to pick up the equipment, quantity or size notwithstanding. After the equipment gets in the custody of the vendor, it is now their responsibility to liquidate the complex equipment in compliance with IRS rules and regulations, which includes all legal review of documents – not to mention reporting. Hence the more reason you should always insist on a reputable service provider.
That out of the way, you will be poised to achieve two very important things. The first is that you will no longer need to pay asset taxes. The second is that an experienced and skilled asset recovery services provider will be in a position to furnish you with a donation receipt that will be proof for your company to qualify for a tax deduction of up to 50% of residual value from IRS during the coming year. That’s right.
And given tax season looms, there is no better time for biotech firms to brace themselves for some much needed tax benefits!