Our Financial & Tax Services
Engineering-Based Cost Segregation Studies
Cost Segregation is the IRS’ preferred methodology for allowing property owners to maximize their depreciation and reduce the amount of taxes owed. For commercial property and residential investment property owners, cash flow from tax savings of about $70,000 per $1,000,000 in building cost basis through both Cost Segregation and Tangible Property Regulation compliance is available. All properties owned 15 years or less, purchased for $150,000+, and will be held for at least 3 years from time of study, should take a look at a Cost Segregation estimate.
Partial Asset Disposition for Renovations
A PAD allows a building owner to write down the remaining depreciable basis of items removed during a renovation, as well as the costs for the removal and disposal of those items. Any major renovation over $50k done in a different year than when the property was put into service should consider.
GreenZip Tape
Green Zip is a patented technology that reduces investors’ near-term tax liability through a sustainable design system that aligns directly with IRS-approved tax laws, helping companies take fuller advantage of available financial incentives and sustainable building credits. It is a sustainable drywall solution which increases cash flow $5-$15 per sq foot.
Financial Benefits
Accelerates depreciation from 39/27.5 years to just 5 years, creating substantial tax savings of $5-15+ per square foot.
Environmental Benefits
Eliminates drywall waste in landfills, which produces toxic hydrogen sulfide gas and accounts for 26% of construction landfill waste.
Construction Benefits
Reduces installation time (twice as fast as a Bazooka gun) and allows for quiet demolition that can be performed during regular hours.
LEED Certification
Qualifies for up to 11 LEED credits, helping meet increasingly strict green building requirements.
179D, 45L, and R&D Tax Incentives
179D: Federal tax incentives intended to promote energy efficiency commercial property. Section 179D provides for the immediate expensing of $0.30 to $1.80 per square foot for qualifying energy efficient projects in commercial buildings. This provides an immediate tax benefit to building owners who must otherwise deduct these costs over 39 years. This is for residential properties 4+ stories and 30,000+ sq feet.
In order to qualify for the maximum incentive, the new construction or renovation project must reduce a building’s energy costs by 50% or more compared to a “baseline” reference building based on 2001 energy efficiency and technology standards (ASHRAE Standards 90.1-2001). If the energy efficient project reduces the building’s energy cost by 50%, it then qualifies for an immediate expensing of the project’s capital cost, up to a maximum of $1.80 per sq. ft.
If the 50% energy cost savings threshold under the general rule cannot be met, a $0.60 per sq. ft. deduction is allowed for any of the three major subsystems that meet a lower energy cost savings standard:
- Interior lighting,
- Heating, cooling, ventilation, and hot water, or
- Building envelope (roof, roof coatings, doors, windows, window film, etc)
What Type of Buildings is Eligible for Section 179D?
All commercial buildings, parking garages, and multi-family residential buildings (greater than three stories), whether privately or government owned, qualify for the deduction. The property must be located within the United States.
Buildings eligible for the 179D incentive include commercial office buildings, warehouses, distribution centers, retail stores, nursing homes, hotels, motels, apartment buildings (greater than three stories), schools, universities, dormitories, federal and state office buildings, courthouses, post office buildings, military bases, airports, etc.
45L: Tax credits available for qualifying new energy efficient residences. Research & Development credit: Companies can claim a dollar-for-dollar reduction of tax liability for qualifying research expenditures.
In 2005, President Bush signed into law the Energy Policy Act of 2005. This act includes the Energy Efficient Home Tax Credit known as section 45L which provides a tax credit for each qualifying new energy efficient residence and multi-residential building built between August 8, 2005 and December 31, 2020. Renovations and rehabilitations to older buildings may also qualify. The tax credit amounts to $2,000 per residence. Further, since the 45L benchmark was based on earlier standards, most recently built homes and multi-dwelling units already exceed the standards to qualify.
R&D:
The Research and Development Tax Credit (“R&D Credit”) was enacted in 1981 as part of the Economic Recovery Act. The R&D Credit has been renewed and extended every two years since its original enactment, until it became a permanent part of the tax code in 2016. The R&D Credit allows companies, large and small, to claim a dollar for dollar reduction in tax liability for conducting qualified research within the United States, as identified by examining qualifying research activities and expenditures related to employee wages, outside consulting costs, and certain material expenses. Taxpayers may claim credits back three years and carry forward unused credits for up to 20 years.
Tax Planning, Finance, & Insurance
For clients looking for more extensive tax planning, we offer a variety of services and strategies for businesses of all sizes. We look at the big picture and work with strategic partners to implement various tax efficient and tax reduction products in all areas of money and finance. Tax planning for Income, Family and Business Tax Planning, Tax Relief, Tax Resolution, Tax Attorney, Tax Preparation, and accounting. The focus on both the assets and liabilities to create a comprehensive plan to accelerate our clients’ goals for the reasons that are most important to them is our mission. Building and preserving wealth is key.
We work with businesses and individuals to help them mitigate risk and grow assets in a tax efficient manner. We use a variety of strategies that include both financial and insurance products. Expertise in the industry is important, but also the fact we are committed to collaborating with the client's attorney and CPA's. Reducing client’s estate tax liabilities, maximize ERISA plans, strategize for a client's comfortable retirement, and ensuring that surviving spouses and heirs can experience a smooth transition of assets after death is our focus.
Get a No Cost, No Obligation Estimate
For skilled tax services, call Sabrina
on (833) 940-5557.
