Our Approach to Cost Segregation Studies | ELB Consulting

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When you partner with ELB, the engineering experts at ELB will take a comprehensive look at your commercial real estate and business to identify other potential tax incentives and cash flow opportunities. These incentives come in many forms beyond our core cost segregation, energy tax credit and R&D Tax Credits.

Disposition/Abandonment Studies:

Disposition or abandonment studies are analyses of buildings that are being demolished or heavily renovated. The studies usually cover the types of assets available and determine whether they can qualify as a tax deduction. The depreciating value of certain tangible assets can also be used as a tax write off your business for buildings that are being demolished. Assets such as lighting fixtures, air conditioning units, and plumbing systems may be abandoned for tax deduction purposes.

Tangible Property Regulations:

If a business must continually provide repairs or maintenance to equipment, it must determine whether these upkeeps qualify as deductible expenses or expenses which must be capitalized and are therefore, non-deductible. While the IRS has made recent changes to simplify this process, it can still be very complicated to determine the appropriate way to list such expenses. For this reason, many companies do not realize that they have potentially unrealized cash flow hidden in their books. By thoroughly investigating all a company’s assets and tax filings, ELB Consulting can use its extensive tax code expertise to reclassify repairs and maintenance from capitalized expenses to deductible expenses, possibly saving the company tens of thousands of dollars.

Fixed Asset Analysis:

Many businesses do not realize that they may have potential sources of cash flow that are not being properly utilized. ELB Consulting offers what is known as a “fixed asset analysis” in which our highly qualified team of specialists analyze all potential assets which could include anything not part of the building itself. Many businesses might not realize that things such as furniture or fixtures can qualify as assets which can significantly increase tax deductions if properly calculated into the correct asset categories.

Employment Tax Credits:

Several government programs exist which provide financial incentives in the form of tax credits to businesses which employ based upon certain criteria. These criteria might include geographical location of the business, types of workers hired, or research efforts. The government offers these programs to incentivize businesses to move into developing areas or provide jobs to particular sets of people. Many businesses may already qualify for such incentive programs. Others may qualify with a minimal amount of adjustments. In some cases, the tax credits may be claimed retroactively.

Historic Tax Credits:

The United States government provides federal tax credits for individuals and businesses which preserve or rehabilitate historical buildings according to certain standards. There are two types of tax credits offered by this program. The first is a (20%) credit offered to an individual or business that is involved in renovation income-producing buildings, both residential and non-residential. The second is (10%) made available to those involved in the rehabilitation of non-historical buildings in use before 1936. These buildings may not be used for residential purposes.

ELB Partnerships:

ELB has established professional partnerships and alliances with several national firms that can offer solutions that augment our engineered tax services and pre-construction tax planning to help you increase cash flow and reduce taxes. Schedule a call with one of our professionals to delve into the opportunities and hidden cash flow within your real estate or business.