Are you looking to free up capital for your company? Consider the advantages of Cost Segregation studies, a widely accepted tax strategy that can help optimize your financial outcomes. By accelerating the depreciation of tangible personal property (§1245), land improvements, and Qualified Improvement Property (QIP), as well as identifying various expensing opportunities associated with commercial and residential properties, a Cost Segregation study can maximize depreciation and increase cash flow.

A Cost Segregation study acts as a powerful tool for property owners, allowing them to front-load the depreciation that a property would typically receive over 27.5 or 39 years into a shorter time frame, typically 5, 7, or 15 years. This accelerated depreciation can significantly improve cash flow, providing the equivalent of an interest-free loan. By working with specialists such as professional engineers and architects who conduct thorough site visits and analyze key data including depreciation schedules, construction drawings, invoices, and change orders, a Cost Segregation study ensures accurate and comprehensive results.

The process of a Cost Segregation study follows the guidelines set by the IRS Cost Segregation Audit Techniques and the ASCSP MQS. It begins with pre-qualification and a proposal, followed by the gathering of the necessary data. Specialists then perform a comprehensive site visit and conduct an in-depth study, reviewing all findings for accuracy. Finally, a detailed report is finalized, outlining the outcomes and recommendations based on the study's findings.

To determine if your property is a suitable candidate for a Cost Segregation study, several factors should be considered. Properties placed in service since 1987 are generally eligible, with most studies focusing on the last 20 years. If your property is currently depreciating over 27.5 or 39 years and has capitalized costs of $500,000 or more, it presents an opportunity for a Cost Segregation study. Additionally, properties that have been acquired, constructed, expanded, or remodeled can benefit from this strategy.

The ideal time to conduct a Cost Segregation study is during the year the commercial property is being purchased, remodeled, or constructed. However, even if this timeframe has passed, it is still possible to perform a lookback study to correct the depreciation schedule without the need to amend returns. By exploring the possibilities of a Cost Segregation study, you can unlock potential tax benefits, improve cash flow, and enhance your company's financial position.

Contact us to discuss how a Cost Segregation study can be tailored to your specific property and financial goals. Our team of experts is ready to assist you in optimizing your tax strategies and maximizing your financial outcomes.

How We Can Be of Service

Introducing GOAT.tax, the trailblazer in R&D tax credit consulting, which has revolutionized the industry for over 40 years. Our distinctive approach eliminates burdensome fees, ensuring access to the R&D tax credit for businesses of all sizes. With an exceptional 350+ years of collective experience, our team sets new standards in the field. Seize the moment to evaluate your past, present, and future R&D endeavors, unlocking the maximum benefits of the R&D tax credit, regardless of your industry. Don't let potential tax savings slip away unnoticed. GOAT.tax stands ready to guide you, securing essential tax savings that empower business reinvestment and propel your next groundbreaking venture. Experience a new era of R&D tax credit solutions with GOAT.tax.

Download Our Aerospace Case Study
Thank you! For Your submission
Click here to download your asset
Oops! Something went wrong while submitting the form.
Access Our Case Study on Consumer Goods Manufacturing
Thank you! For Your submission
Click here to download your asset
Oops! Something went wrong while submitting the form.
Download Our Comprehensive Metal Fabrication Case Study

To gain deeper insights into how our strategies and innovations have yielded remarkable benefits, please share your details.

Thank you! For Your submission
Click here to download your asset
Oops! Something went wrong while submitting the form.
Access Our Case Study on R&D Tax Credit for Precast Concrete
Thank you! For Your submission
Click here to download your asset
Oops! Something went wrong while submitting the form.

Which Industries Qualify?

The R&D tax credit can be applied to a wide variety of industries, including (but not limited to):

Aerospace

Tool & Die

Metal Fabrication

Plastics & Injection Molding

Consumer Products

Manufacturing

Architecture & Engineering

Food & Beverage

Financial Services

Mortgage & Banking

Software Development

Chemical

Contract Manufacturing

Construction / MEP

Pharma

Oil & Gas

Popular

By
Deb Roth
on
August 14, 2023

Maximizing Cash Flow Through Government Tax Opportunities

Amid the ongoing challenges posed by COVID-19, numerous small and midsize businesses are grappling with maintaining cash flow, operational capabilities, and their internal research and development initiatives. While the Coronavirus Aid, Relief, and Economic Security (CARES) Act did extend financial aid to these COVID-19-affected enterprises through emergency grants, retention tax credits, and forgivable loans, these solutions offer only temporary cash flow relief, falling short of providing lasting solutions.

By
Deb Roth
on
August 14, 2023

Understanding the R&D Tax Credit Carryforward Period

The R&D Tax Credit Carryforward Period refers to the duration during which unused portions of research tax credits can be applied to offset future tax liabilities. This provision is often overlooked by many taxpayers who are eligible for R&D Tax Credits. In most cases, companies that have qualified research expenses but lack current income can carry forward these credits to offset taxes on forthcoming profits. The carryforward period allows credits to remain applicable for up to 20 years. Additionally, the option to carry back credits for the previous year is also available.

By
Deb Roth
on
August 14, 2023

Are R&D Tax Credits Convertible to Cash?

Navigating the world of R&D Tax Credits often prompts the question: Can these credits be converted into cash refunds? It's a query frequently posed by businesses seeking to maximize their returns on research and development investments. While R&D Tax Credits themselves aren't inherently refundable, they can still yield a financial windfall in the form of cash benefits.

Have any question? We're here to help.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.