More Section 179 deductions means tax reduction, less taxable income, and less taxable income equals less taxes!
If you have constructed or improved your commercial building in the past three years, chances are good that your building could be eligible for an energy efficiency Section 179 deduction of up to $1.80/SF.
Unlike a standard depreciation based on the asset's cost, the energy efficiency Section 179 deduction is not related to the value of the assets.
Instead, this section 179 deduction is concerned about the energy efficiency of the the building components as compared to the energy efficiency of the same building as if it was built to code in 2007. If the new construction is 16 & 2/3 more energy efficient than the 2007 version a section 179 deduction will be awarded after the building is properly modeled by an approved engineering firm.
There are three types of eligible credits:
1. Lighting $0.30-$0.60/SF Sec 179 Deduction
2. Building Envelope $0.60/SF Sec 179 Deduction
3. HVAC $0.60/SF Sec 179 Deduction
A 40,000SF car dealership that has all three qualifying components could be eligible for $1.80 x 20,000 =
$72,000 Sec 179 Deduction
Eligible buildings include:
Any Commercial Building
Commercial Building Owners can take advantage of the tax laws and legally accelerate depreciation by utilizing Cost Segregation Studies, increasing tax deductions, thus decreasing taxable profit and reducing your tax liability. Financial Freedom is close at hand!
We've been performing these studies for car dealers, hotels, warehouses, manufacturers, retailers, and others since 2005.
Anyone with a building costing at least $750,000 can take advantage of this method of reducing taxes.
For example, a Cost Segregation Study we preformed for a $6M manufacturing plant accelerated their depreciation so much in the first year, that when the tax savings were combined with their mortgage interest expense, the government, in essence, paid them to build the facility.
The ideal situation to maximize your tax savings is to have us consult on your building project before you break ground. This way we can suggest certain changes to the finishes, parking lot, electric system, etc. that will result in greater savings.
Construction Companies utilize our services to bring additional value to their proposals - and to close the sale!
How would you feel if you could have some of your spent money back?
It's not magic, we work on a 50/50 commission basis to recover your previously spent money.
Sales Tax Audit
We audited the state sales tax auditor's finding for an oil and gas drilling company.
The state demanded $113,000 for taxes not paid on an asset purchase 18 months prior. The business didn't want to pay $113,000, but was at a loss on what to do to avoid the payment.
As the Third-Party auditor, we were able prove that the equipment was used in such a manner as to be considered tax-exempt . Consequently, we were able to eliminate the state's demand for payment!
Worker's Comp Audit
For another client, we audited their Worker's Comp Insurance audit and found that lower cost job classification could be utilized. Additionally, out of state work was treated improperly as in-state work.
The first year's audit of the auditor resulted in almost $200,000 in savings/recovery and the second year insurance audit we performed resulted in $132,000 recovery/reduction.
Our Worker's Comp and GL audit at another company, combined with a wholistic insurance review, resulted in over $600,000 in savings.
Job Billing Audit
For one Oil & Gas Drilling Contractor client, we audited the contract between Owner and Contractor. We found a loophole in the contract allowed for certain "non-typical" drilling expenses to become pass-through expenses to the Owner.
The additional $250,000 billing our client picked up went a long way towards making this contractor profitable.
At a General Contractor, we found that the local Industrial Development Agency's agreement that allowed for property and sales tax exemption for a certain real estate development project could be applied to a second real estate development project, saving the owner $40,000.
For 20 years, we've been helping profitable small businesses earn more and keep more of what they earn.
We've helped various business types:
Brine Disposal Wells
Commercial Building Contractors
Heavy Hall Trucking
Hydraulic Fracturing Co's
Oil & Gas Contractors
Oil & Gas Exploration
Real Estate Developers
We write financial prospectus (a fancy way of saying, "Credible Business Plans") for:
Oil & Gas Ventures
We can help raise investable funds (debt or equity) for start-ups and expansions.
We reduce our client's tax liability, cut operating costs, increase deprecation - legally, increase top line revenue, collect slow pay A/R accounts, recover WC insurance premiums, successfully fight sales tax audits, and reduce insurance expenses, improve cash flow and wealth management.
We help owners invest their cash wisely and make sure that their heirs not only inherit the business - but are able to pay the IRS bill when the time comes for the business to change hands.