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ELB Consulting, Inc. Engineered Commercial RE Solutions
reduce taxes. increase cash flow. improve building performance.
Cost Segregation | EPAct 179D & 45L Energy Tax Incentives
R&D Tax Credits | ASHRAE Energy Audits | Cost Recovery
Disposition/Abandonment Studies | Fixed Asset Reviews
“Cost Segregation is a lucrative Tax Strategy that should be used in almost
every purchase of commercial real estate.” – IRS, WSJ
“As a practical matter, cost
segregation studies should be applied by the taxpayers.”
– Internal Revenue Service, US Department
Cost Segregation
What is Cost Segregation?
Allows building owners to depreciate buildings
(new/existing) in the shortest time permissible under
IRS tax laws, thus minimizing their overall tax liability
Benefits:
An immediate increase in cash flow
A reduction in current tax liability
The deferral of taxes
The ability to reclaim "missed" depreciation deductions
from prior years (without having to amend tax returns)
How does Cost Segregation work?
Significant savings are hidden in your walls, your floors, built-ins, your ceiling, and even your landscaping outside
Certain components previously classified with a 39 or 27.5 year life, can be classified as personal property or land improvements; applying a 5, 7 or 15-year depreciable life
A “fully engineered” study quantifies all a property’s major components and leasehold improvements; so when these assets are replaced or renovated, any life remaining may be ‘retired’ or written off
Cost Segregation & ELB
ELB methodology delivers ‘Fully Engineered and Accounted’ Studies, the highest level as identified by the I.R.S. guidelines
Over 10,500 studies have been completed to date, and never a study rejected by the I.R.S.
One of our principals, Eric Ernst serves as a U.S. Tax Court Expert Witness on cost segregation
All studies are backed by our Quality Assurance Guarantee and no-cost defense of study
Cost Segregation & ELB
Our ‘fully engineered’ analysis of commercial property will identify ALL qualified (5,7 & 15 yrs) and non-qualified (39 or 27.5) building components; which complies with the Repair and Maintenance Regulations updated in 2014
Our detailed report also serves as a Fixed Asset Tool, our competitors charge extra for this
ELB bridges the gap between detailed engineering, construction and accounting practices
Suitable for All Property Types
Apartments (Mid/High) – 7 to 20%
Apartments (Garden) – 15 to 45%
Assisted Living -15 to 25%
Auto Dealerships – 20 to 35%
Bank Buildings – 20 to 45%
Car Washes – 20 to 40%
Convenient Stores – 20 to 45%
Distribution Buildings – 10 to 15%
Fitness Club – 20 to 30%
Golf/Resort – 30 to 70%
Hotels – 20 to 35%
Manufacturing – 30 to 75%
Medical Office – 25 to 50%
Office Building – 10 to 25%
Pharmacy – 10 to 35%
Printing Facility – 15 to 30%
Research Building – 20 to 60%
Restaurants – 20 to 40%
Retail – 15 to 35%
Self Storage Facility – 20 to 80%
Supermarket – 22 to 40%
Shopping Center – 20 to 40%
Tenant Space – 22 to 60%
Warehouse – 8 to 18%
Green Energy Tax Incentives
The Energy Policy Act of 2005 (“EPAct 2005”) established federal tax deductions for all qualifying investment costs in that improve energy efficiency of the whole building, or for the three building subsystems: lighting and lighting controls; HVAC/Hot Water; and the building envelope
Commercial |179D Tax Deduction (up to $1.80/sf)
Residential | 45L Tax Credit ($2,000/unit)
R&D Tax Credits
Made permanent in December 2015 by PATH Act
The Research & Experimentation Tax Credit (aka the R&D Tax Credit) is a business tax credit allowable under I.R.S. Revenue Code Section 41, for firms that incur research and development expenses for the further development of their products and services
Businesses of all sizes, across multiple industries may qualify; biotech, telecommunications, consumer products, food & beverage, architectural design, construction materials, pharmaceutical, electronics, chemical engineering, aerospace, etc.
ELB Consulting | Other Services
Cost Segregation Design Guidance
Repair vs. Capitalization Review
Tangible Property Repair Regulations
Engineered Insurance Replacement Appraisal (DEIRA)
Construction Audits
Fixed Asset Analysis and Review
LED Retrofit Lighting solutions
A few of our satisfied clients
reduce taxes. increase cash flow. improve building performance.
Bill Smith ELB Consulting, Inc.
480.747.5547
ELB Consulting, Inc.