Cost Segregation of Commercial Property
Cost Segregation Studies are one of the most overlooked programs for businesses nationwide and yet the most powerful benefit to commercial property owners. This tax planning strategy identifies and maximizes a client’s tax benefits by accelerating depreciation deductions and deferring tax payments on commercial property. We provide a no-risk upfront assessment to determine if clients qualify. Our team of tax professionals, structural-design experts and engineers identify and re-classify commercial building component expenses.
Engineering based cost segregation studies permit commercial real estate owners to reclassify real property for depreciation purposes and reclassify it as more rapidly depreciating personal property. This reclassification results in significant cash flow benefits in both present and future years through considerably shorter depreciable tax life and accelerated depreciation methods. Note, these studies are not limited to new buildings or new renovations. Over 75% of our projects are on older properties using the “catch up” method which can produce significant results. Although some building owners and CPAs have heard of Cost Segregation, this program is actually an engineering study. Countless building owners are missing out on this powerful tax savings strategy. To facilitate this work we do an initial consultation and develop a feasibility report to determine the cash flow and net present value (NPV) benefit potential. Our professionals evaluate your current tax status and your future business plans along with your CPA to determine if a full study would benefit your company.
The result is an instant tax benefit to the client to offset any taxes they owe; or in some cases, provide much needed cash flow to the business.
“Cost Segregation Studies are a lucrative tax strategy that should be considered in almost every real estate purchase.” -US Treasury Department
Commercial Property Tax Reviews
Outside of income taxes, the single largest recurring charge for commercial property owners are property taxes. Every property owner feels they are overpaying on their property tax. In most states, owners are required to pay taxes on both their real estate as well as their personal property. These charges are often an immense expense and a constant hit to the bottom line. To ensure you are not being overcharged on your property taxes, a specialist with extensive market experience in valuation, tax, and law is needed. Our experienced team of professionals in mitigation, valuation, assessments, and law will work on your case to identify any potential opportunity for refunds and/or reductions in your current property taxes. We perform all the work on your behalf until savings are captured, including partaking in hearings and filing necessary paperwork. We act as an extension of your company toward the governing property tax bodies.
Manufacturing Tax Credits
Also known as “Research & Development Credits” or “Manufacturing Incentives”
The Research & Development Tax Credit was originally enacted as a Federal Tax Program in 1981 and was designed to encourage American investment in innovation. In 2004, tax regulation changes significantly expanded this credit opportunity which is available to many small and medium sized companies whose activities include design, manufacturing and process improvements. Companies that qualify for this program get significant tax credits based on activities related with developing or improving a product and/or process. Our team of highly qualified professionals which includes IP attorneys with engineering backgrounds, adheres to the Comprehensive Project by Project Approach methodology required by the IRS. By following this methodology, we qualify every applicable employee, activity, hour spent and corresponding wage paid in order to maximize the incentive for you. We strictly adhere to the applicable sections of the code and provide comprehensive documentation to substantiate our findings. The PATH Act of 2015 made some very exciting changes to this program and also made them permanent. The best part is this service pay every single year with major benefits for your client.
“The R&D credit is designed to spur growth through innovation by enabling taxpayers with research-related expenditures to receive a credit against their regular income tax liability”-American Institute of CPA’s (AICPA)
The benefits of having an R&D Tax Credit Study performed would be:
- Dollar for dollar credit against taxes owed or previously paid
- Carry forward credit for future profitable years
- Immediate increase in company cash flow
Many employers are not aware of the many tax incentive programs available to help companies hire and keep employees. Our hiring specialists review more than 90 such programs to determine the eligibility of current and future employees in order to assess potential for tax credits.
Hiring tax incentives are available to companies that are growing and creating net new jobs; companies that are experiencing a high turnover in a given year; as well as companies that have seasonal employment swings such as retail chains, warehouses, manufacturers, restaurants, hotels and motels. Our experts are here to provide guidance on how to maximize the incentives you receive when hiring new employees; summer youths, new adults, new disabled veterans as well as benefits for each new long term family assistance recipient hired over a two year period. Some of the programs that we look into on your behalf are the Work Opportunity Tax Credit, Hiring Incentives Restore Employment Act and the Small Business Jobs Act. The PATH Act of 2015 has significantly expanded the platform of Hiring Incentives. Local, state, and federal tax incentive programs allow employers to reduce taxable liability of private-for-profit employers for the hiring of qualified individuals.