If the client has renovated or improved a property, we can “abandon/fully partial dispose” the removed assets and accelerate the depreciation of the remaining life remaining on that asset/s. For example: even if it is a 39-year property IE (roof) we can accelerate the remaining life and abandon that disposed of asset.
The Tax Cuts and Jobs Act (TCJA), passed in December 2017, made several significant changes for tenant improvement property. All tenant improvements are now subject to 39-year depreciation and a cost segregation study must be performed for tenant improvement to be accelerated.
After an initial discussion with the client/building owner we provide a complementary preliminary analysis of the potential benefits.
If the client elects to proceed with us we execute a client agreement, collect necessary documents, perform site visit, conduct detailed analysis and provide fully engineered IRS-compliant documentation.
Our fee is a fraction of the benefits identified.
We perform engineering studies on for-profit commercial property. We deliver substantial tax benefits by identifying opportunities (assets that accelerate faster than standard 39-year straight line).
For example: On a $10M building purchased or built ground up in 2018-2019 we can potentially accelerate between 40%-50% in the 1st year due to 100% bonus depreciation, which would drive potential taxable income deduction of $5M to a building owner that is an LLC paying (40% combined tax rate) and reducing taxes paid to IRS by tax rate. This requires no amendment of the return.
We are a leader in the field for over 9 years and have completed over 360 studies without a single IRS audit and our engineering team has completed over 5,000 studies successfully.
Our approach gives us the confidence to offer our unique Peace Of Mind Guarantee: If our clients incur an examination by the Internal Revenue Service, our team of engineers, lawyers and experts will provide the IRS with all requested documents and defend our study at no cost to our clients.