Engineered Tax Services (ETS) is a licensed energy engineering firm with specialty tax
expertise marrying the science of e...
Engineered Tax Services (ETS) is a licensed energy engineering firm with specialty tax
expertise marrying the science of e...
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ETS All-in-One Services Brief with CostSeg, 179D, R&D, Utility Tax Audits MD 2016

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ETS All-in-One Services Brief with CostSeg, 179D, R&D, Utility Tax Audits MD 2016

  1. 1. Engineered Tax Services (ETS) is a licensed energy engineering firm with specialty tax expertise marrying the science of engineering with the principles of tax and accounting. We find solutions that result in increased cash flow, minimized tax payments and maximized return on investment. Ask how we can help increase your cash flow through any of the following services Palm Beach (Headquarters) | Atlanta | Boston | Charlotte | Chicago | Cleveland | New York | San Diego | San Francisco Los Angeles | Miami | Tampa | Salt Lake City | Las Vegas | St. Louis | Denver | Houston | Seattle | Portland Cost Segregation, Construction Tax & Energy Planning A cost segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods to accelerate the return on investment in property. Whether newly constructed, purchased or renovated generally over the last 10 years, the components of your building may be properly classified through a cost segregation study into accelerated recovery periods for computing depreciation deductions. The study carves out with forensic engineering detail into 5, 7 and 15 year lives, certain qualifying portions of your building that are normally buried in 39 or 27½ year categories. Done proactively, prior to or during the design/construction process, ETS can work to help maximize your allowable depreciation, improve the functionality and energy efficiency of your design, and help capture all available federal, state and local utility energy tax incentives. EPAct 179D Federal Energy Tax Deductions We specialize in the energy tax certification process required by the IRS to calculate the tax deductions achieved for the installation of energy efficient systems including Lights, HVAC, and Building Envelope components completed from 2006-2014. The deduction ranges from $.60 per sf and $1.80 per sf. We have provided thousands of the highest quality energy tax certifications since 2005. Completing over 200+ certifications every month, we have perfected the process to maximize benefits and reduce risk by working closely with the IRS on a regular basis. Our CPAs, Engineers and Architects on staff strengthen our credibility and IRS qualifications under EPAct. Energy Audits, LEED & Energy Star Benchmarking In addition to being the first step in LEED certification, our forensic energy audit includes a detailed report with extensive and precise breakdowns of your current annual energy use and costs. Understand your building’s energy efficiencies (or waste) and the alternatives to reduce energy use and operating costs. Our energy audit services range from a peripheral inspection to a fully detailed inspection audit and Energy Star Benchmarking. A comprehensive facility energy audit is a survey of a building or facility that also provides sufficiently detailed information to help qualify for various additional Federal, State and local Utility company incentives. Repairs & Maintenance TPR Regs Studies With a detailed analysis of your expenses for repairs and maintenance, we can help you reduce your tax liability and improve cash flow by properly reclassifying these expenditures. First, we identify which asset costs are not properly classified, then reclassify them as deductible repairs as defined by IRS Code Sections 162 and 263. Deductible repairs may include reoccurring and incidental repairs that help to maintain efficient operating condition but do not necessarily prolong its life, add material value or adapt the property for new or different use. Expenses incurred or paid for incidental repairs and maintenance are not considered as capital expenditures and may be reclassified to accelerate deductions in the current year. A proposed regulation, likely to be released this year, may also allow certain cosmetic and remodeling expenses, such as those that would improve branding, retail or merchandising, or provide a property "facelift", as deductible under the repairs and maintenance rules. Abandonment & Disposition TPR Regs Studies When you undertake demolition or renovate a building and remove old lighting, HVAC units and other building parts, these assets are abandoned. As such, their book value can be treated as a business deduction. The tangible personal property within the structure (or a part of it) can be written off when the building is demolished, provided that the personal property is to be abandoned, was not purchased with the intent to demolish, and is identified and valued prior to demolition. Engineered Insurance Replacement Appraisals An engineering-based insurance appraisal is a replacement cost analysis that provides an accurate estimate of the amount of insurance required to replace each structure and/or amenity exactly as it stood. We calculate each building’s replacement cost on a component-by-component basis from the ground up and process the complex calculations needed to correctly estimate the labor and material costs. We provide a “Detailed Engineering Insurance Replacement Appraisal” (DEIRA) that is accepted by national insurance company underwriters to establish accurate property valuations, reduce and/or eliminate disagreements following a covered loss, and most importantly, reduce premiums while improving coverage terms and conditions. We have a 90% success rate for our clients. Historic & Preservation Tax Credits The federal tax law offers incentives to taxpayers who contribute to the preservation of our nation's old and historic buildings. By rehabilitating directly in the rehabilitation of eligible buildings, you can take advantage
  2. 2. Engineered Tax Services (ETS) is a licensed energy engineering firm with specialty tax expertise marrying the science of engineering with the principles of tax and accounting. We find solutions that result in increased cash flow, minimized tax payments and maximized return on investment. Ask how we can help increase your cash flow through any of the following services Palm Beach (Headquarters) | Atlanta | Boston | Charlotte | Chicago | Cleveland | New York | San Diego | San Francisco Los Angeles | Miami | Tampa | Salt Lake City | Las Vegas | St. Louis | Denver | Houston | Seattle | Portland of one of two tax credits. The federal income tax credit is equal to 20% of the cost of rehabilitating historic buildings or 10% of the cost of rehabilitating non-historic buildings constructed before 1936. These credits provide a dollar-for-dollar reduction of income tax owed. Buildings eligible for the 20% rehabilitation credit include those used for rental residential as well as nonresidential purposes. Buildings eligible for the 10% rehabilitation credit must be nonresidential, commercial and industrial buildings. Reserve Studies & Facility Audits Our reserve study is a comprehensive report of any major components that will need repairs, restoration, maintenance or replacement within the next 30 years. During a reserve study each component is evaluated to determine the current condition, remaining useful life and the estimated replacement cost. The data is then synthesized to determine the annual contribution needed to avoid special assessments in the future. All costs and annual reserve balances are shown both in constant dollars and adjusted for inflation and interest. The most accurate reserve studies are conducted by an engineer who understands building construction. Research & Development Tax Credits The Research & Development (R&D) tax credit is one of the most significant domestic tax credits remaining under current tax law – a substantial tool for maximizing a company’s cash flow and bottom line. No one can afford to leave money on the table. Nevertheless, when it comes to the R&D credit, cash is left untouched all the time. Despite the fact that the R&D credit has been available since 1981, less than a third of eligible companies recognize that they qualify for the credit. Even if companies claim an R&D credit, they frequently do not claim the entire credit to which they are entitled, either because they do not understand what qualifies or do not have the processes in place to properly document the credit. The credit is a dollar-for-dollar cash offset against your taxes and can be significant if properly pursued. Renewable Energy Tax Credits & Project Financing There are various other Federal, State and local utility tax incentives available for renewable energy projects such as Solar, Wind, Geothermal, Microturbine and other “green” energy and energy efficiency projects. ETS will assist from the planning stages of through implementation and certification. ETS also has innovative financing options available to assist with the capital required for new buildings, renovations and overall project financing and at times even providing 100% of the required capital in a lease or off balance sheet structure. Utility Tax Audits Utility Tax Reductions and/or Exemptions help to capture substantial immediate savings and retroactive cash refunds. Most states and local jurisdictions assess sales or other excises taxes on the purchase of utilities including, but not limited to, electricity, natural gas, water and wastewater. Depending on the taxing jurisdiction(s), use of the utility in the customer's locations, type of operation, multiple locations, etc. It is not widely known or published that said taxes and other fees may be able to be reduced or eliminated completely in addition to substantial retroactive cash refunds. These jurisdictions require detailed onsite engineering use or predominant use studies by a qualified independent 3rd party to determine the exact percentages of energy and utility use in various areas and specific operations. ETS can supply full services in this niche energy tax area including identification and quantification of the opportunity including an overall strategy for success, details on prevailing rules, local laws, completion of a onsite use/predominant use study, processing of exemption or reduction certificate and processing of cash refunds and/or credits for past statutory periods as well as other energy tax and efficiency actions to help maximize benefits and increase cash flow. Laws, treatment and process varies widely between various states and local utility jurisdictions. 1. Utility Tax Targets: Multi-Site Operations, Retail, Hospitality, Oil & Gas Processors, Manufacturing and Distribution Operations, 2. Look For: Generally buildings over 20,000 sf and/or utility costs greater than $3,000 per month. 3. Next Step: Gather one to two months of last utility bill invoices for a quick no-risk, no-cost review for benefit analysis. About ETS Engineered Tax Services (ETS) is a professionally licensed energy engineering firm with specialty tax expertise working nationally with top- 100 CPA firms, Architects, Fortune 500 Companies and commercial property owners providing 179D Federal Energy Tax Certifications, Engineering-based Cost Segregation studies, Construction Tax and Energy Planning, DEIRA Insurance Replacement Appraisals, R&D tax credits and other niche services. ETS averages 200+ studies per month delivering over $50 million per month in tax benefits back to our clients. Ask us what your property qualifies for... ETS Contact: Michael F. D’Onofrio, Managing Director Engineered Tax Services 561-762-0044 Direct mdonofrio@engineeredtaxservices.com www.engineeredtaxservices.com CPE Professional Education Approved For: CPAs, AIA, USGBC, NSPE, ASHRAE

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