Posts Tagged ‘cost segregation study’

Millions of dollars in tax benefits are frequently buried
like hidden treasure within your firm’s client records.

Engineered Tax Services (ETS) works with you to uncover these treasures to provide additional revenue for your firm and substantial tax savings for your clients.

Real estate clients rely on your expertise to provide them with tax strategies, techniques for maximizing revenue and expense reduction alternatives. Our experience shows that a quick and easy analysis of your clients’ depreciation schedules will assist you in generating significant tax savings for clients, building stronger client loyalty and developing additional long-term revenues for your firm. Our simplified process allows us to do this without any capital investment on your part and very little time commitment from your staff.   

Step 1 – Data Mining
The first step is to analyze your current client files to identify which clients have real estate holdings. Typically, in about an hour, your administrator can run a report through your tax software to generate a list of clients with real estate so that depreciation schedules can be run. Within a few hours, depreciation schedules are electronically redacted and printed with client numbers for identification purposes and forwarded to us for independent analysis.

Step 2 – Benefit Analysis
Upon receipt of the depreciation schedules, we will perform a benefit analysis to determine cost segregation and energy opportunities for each client. Within a week, qualified leads and estimated tax benefits for each will be identified.  Based on a firm your size, we anticipate discovering between 30 – 75 opportunities to be culled from the analysis process. We return the detailed estimates of the valuable tax savings identified to you and set up a conference with you and your partners to prepare a notification to qualifying clients.

Step 3 – Client Communications and Engagement
The next step is to communicate with the clients identified for cost segregation and energy opportunities. The timeline on this phase varies depending upon the availability of each client and partner, but generally takes between one and four weeks. In our experience, clients warmly welcome the news that additional tax savings are possible. We can handle the benefit discussions with clients or support you in your efforts. Marketing materials as well as ETS professionals may be available to help you with client communications.

Step 4 – Reporting
Once the engagement letters have been signed and received, we will prepare IRS-sanctioned reports and studies for each identified client. The cost segregation studies and energy reports as engaged by clients identified in the analysis are typically completed and delivered within 45 days from onset of the engagement.

Total Process Time:
90 Days to Treasures

The beauty of the Hidden Treasures assessment program is that you can:

• Create a new revenue stream
• Obtain new clients
• Solidify existing relationships
• Enhance your reputation
• Improve your firm’s competitive positioning in the marketplace
• …all with no capital needed…

We welcome the opportunity to explore the tremendous return on investment your firm’s participation in the Hidden Treasures program may yield. Please contact us for more information or to schedule a complimentary presentation.

Contact us at 1.800.236.6519 or visit www.engineeredtaxservices.com.

TAX FLASH:  If there is a net loss generated from the cost segregation study, that loss can be carried back.  A net operating loss (NOL) is the excess of business deductions (computed with certain modifications) over gross income in a particular tax year. The loss can be deducted, through an NOL carryback or carryover, in another tax year in which gross income exceeds business deductions.

In general, NOLs may be carried back two years and forward 20 years. However, if the taxpayer qualifies, the NOL can be carried back as far as 3, 4 or 5 years. The NOL is first carried back to the earliest tax year for which it’s allowable as a carryback or a carryover, and is then carried to the next earliest tax year. A taxpayer may elect to forego the entire carryback period for an NOL and instead carry it forward. This is significant because if there is tax dollars paid in prior years and the cost segregation study takes a company from being profitable for tax purposes to being in a net operating loss situation, the company can obtain tax refunds from the tax years still open by statute.