Taxes Saved: Over $85,083
Cost Segregation Services
RSG was engaged by the CPA firm of a dental client to conduct a cost segregation study on his dental office. The objective of the study was to identify assets that could be moved to shorter recovery periods in order to accelerate depreciation and defer taxes.
This $724,300 development consists of a new construction dental facility. The project includes site improvements on a 1 acre parcel.
Our engineers examined all design and construction documents, contractor payment requisitions and other related data to determine the cost basis for every component involved with the project. Next, our engineer conducted an on-site study to identify and photograph all assets that may qualify for accelerated depreciation.
Further, our site engineer. costing engineer and tax specialist identified assets that qualify as "Specialized Use", i.e. outside normal use of that property type.
The cost segregation study accelerated $243,093 (35.2%) of the assets to shorter recovery periods. As a result, the property owner's tax savings is projected to be over $85,083 for the current tax year.
Taxes Saved: Over $184,731
Research & Development
RSG was engaged by the owners of a computer-based manufacturer in Virginia to conduct a R & D study for their facility. The objectives of the study were to analysis and qualify expenditures available for research and development federal tax credit.
The facility has a total building area of approximately 60,000 square feet and located in Virginia with gross receipts over 34 million.
Our tax team met with the CFO of the manufacturing facility to gather all relevant data needed for our study. Next, our tax team analyzed expenditures over a three year period. Our analysis qualified on average, over that time period, research and development expenses of $787,497 each year.
The Research and Development Study identified qualified research expenses, over a three year period, to average out at $787,497 each year. The federal credit over the three year period for the manufacturer was calculated to be valued at $184,731 for the client.
Taxes Saved: Over $278,000*
Energy Efficiency - 45L
RSG was engaged by the owner of a low-rise apartment complex to conduct an energy efficiency rating for an existing development in order to analysis the feasibility of qualifying for the 45L energy efficiency tax credit.
This 206 unit multi-family complex office was garden style in nature. It was built and leased in 2008.
Prior to the field activities, our certified HERS rater closely examined the building plans supplied by the owner. The second stage of our work included the review of all relevant construction documents. Next, our HERS rater conducted an on-site visit to conduct the necessary tests mandated for certification per the IRS guidelines. Significant attention was given to the evaluation of testing and to the RESNET sampling protocol at the complex. Following the site visit, our team recommended certain remedial improvements that would be essential for qualification. The client completed the recommended improvements and the units were retested and certified.
Our analysis modeled and identified a remedial improvement package that certified 139 of the 206 unit multi-family development. Our client realized $278,000 dollars of bottom-line impact.