Uncovered Personal Property Tax Savings for Short-Term Rental Equipment
By facilitating discussions between the Missouri Assessors office and our client, we were able to support that $6.5 Million of short-term rental equipment is and should continue to be exempt from the state’s ad valorem or personal property taxes.
Facilitated a Beneficial Restructure of a Building Renewal Lease Agreement
Our client needed to structure and draft a new lease agreement to renew their building lease. We were able to obtain current lease rates in their market and introduce them to a commercial real estate broker to draft the most beneficial lease agreement for them.
Tax Reform Corporate AMT Repeal Saved Client $50,000 in R&D Tax Credits
Under the old tax code, our client was subject to alternative minimum tax (AMT) and could not receive a benefit of research and development (R&D) credits. Once that rule was lifted, we suggested that the client take advantage of R&D credits. We have been able to claim Federal tax credits of nearly $50,000 for the company so far in years one and two.
Performed Cost Segregation Study for Apartment Complexes Resulting in Net Present Value of $415,000
By conducting cost segregation studies on senior living apartment and college apartment developments we netted the developers $415,000 in net present value with the combined cost segregation studies.
Saved Assisted Living Facilities $340,000 in First Year with Cost Segregation Study
By completing a cost segregation study on seven senior living facilities developed and built we saved the developer/investor $340,000 within the first year of operations. The overall net present value of completing the cost segregation studies for these senior living facilities exceeded $2 million for all projects.
Increased Cash Flow and Net Present Value through Cost Segregation Study
Performed a Cost Segregation study for a manufacturing facility that produces metal parts for the aerospace industry. By reclassifying 30% of the total depreciable property into 5, 7 or 15-year property, the accelerated depreciation deductions resulted in an increased cash flow of $250,000 over the first year and a net present value of $230,000 over the life of the investment.
Saved Manufacturer $19,000 with R&D Tax Credits
Performed an R&D Tax Credit study for manufacturer of optical targeting products for metrology support systems. We were able to identify nearly $545,000 of Qualified Research Expenses (QREs) for tax year 2016, resulting in a benefit of $19,000 in total tax credits.
Procured Over $3 Million in Economic Incentives for Facility Expansion
A St. Peter’s based manufacturer had a facility expansion that called for the creation of 125 additional jobs, new equipment needs and an ongoing training initiative. We negotiated with the Missouri Department of Economic Development to procure nearly $2,600,000 in benefits from the Missouri Works program, $680,000 in property tax abatement and $100,000 in training grants.
Identified $60,000 in R&D Tax Credits for Manufacturer of Custom Tools and Dies
An R&D Tax Credit study was performed for a client specializing in rapid turnaround and high volume engineering and manufacturing of custom tools and dies. The study identified $1,150,000 of Qualified Research Expenses (QREs) for the tax year 2015, resulting in a federal benefit of approximately $60,000 in tax credits.
Deferred Tax on Sale of Building Through Like-Kind Exchange and Used Historic Tax Credits on Purchase
Worked with a client on the sale of existing office space and purchase of a new building defer approximately $15,000 of tax on the sale through a like-kind exchange. Additionally, because the new building was located in a historic district, we were able to assist the client through the process of applying for MO Historic Tax Credits related to the planned rehab of their new building.
Secured $2.5 Million in Economic Incentives
Assisted a client with plans of adding jobs, purchasing equipment and expanding their manufacturing facility secure over $2.5 million in economic incentives from state, county and local governments through the Missouri Works program and the Chapter 100 bond process.
Discovered Depreciable Property on Purchased Golf Course
Our client purchased a golf course for $6.7 million in 2013. Due to complex depreciation rules surrounding golf courses, and to ensure they weren’t leaving deductions on the table, our client decided to perform a cost segregation study on the purchase. During the study, it was determined that the tees and greens were up to USGA standards and therefore we could treat what otherwise would be non-depreciable land as depreciation property. The net present value of the study was over $309,000.
Used Bonus and Accelerated Depreciation for 40% of Costs in Assisted Living Facility Construction
A new assisted living facility was built at a total cost near $5.8 million. After our client engaged us to complete a cost segregation study, roughly 40% of the costs ($2.4 million) were eligible for bonus depreciation and accelerated depreciation. The net present value over the life of the project was over $432,000.
Performed Cost Segregation Study to Break Down $3.6 Million into Shorter Lived Assets
After purchasing a commercial building and incurring renovation costs totaling $7.6 million during 2008 and 2009, our client decided to do a look back cost segregation study and “catch-up” on depreciation deductions the 2015 tax return. Over $3.6 million of assets were broken down into shorter lived assets. The net present value of the study was nearly $355,000.
Used Cost Segregation Study to Save Auto Dealer Over $273,000
Our client, an auto dealer, purchased a commercial building for $1.6 million and incurred $1.5 million in renovation costs in 2014. After a qualified cost segregation study was completed, over $1.4 million of assets were broken down into 5-, 7- and 15-year MACRS property. The net present value (the cumulative value of accelerated tax savings) of completing the cost segregation study was over $273,000.
Discovered Additional First Year Deprecation Deduction of over $400,000 Using Cost Segregation Study
An office building was constructed from the ground up at a total cost of $3.3 million. As a result of a cost segregation study, nearly $731,000 of costs were re-categorized from 39-year property to 5, 7 and 15 year property. This resulted in an additional first year depreciation deduction of over $400,000.
Turned Research & Development Expenses into $30,000 in Federal Tax Credits
We recommended a manufacturing client consider a research credit study to determine if federal credits could be taken on their tax return. Based on findings of the study, the company spent quite a bit on research and development activities and resulted in a $30,000 federal tax credit.
Performed Research & Development Study that Saved Client Thousands
By performing an R&D study, we were able to successfully pinpoint actions taken by the client’s business which qualified for tax credits at the state and federal level. These credits translated into tens of thousands of dollars of tax savings for the partners of this flow-through entity.
Performed Depreciation Planning and Cost Segregation Study Resulting in $172,000 in Tax Savings
Through depreciation planning surrounding the IRS Repair Regulations, along with performing a cost segregation study, Anders accelerated over $220,000 in depreciation deductions to save the owners of a medical office building over $100,000 in Federal and State income taxes on their 2014 individual income tax return. As a result of the accelerated first year deductions and additional accelerated deductions during the first five years of the building’s life, this tax planning will result in a total of over $172,000 in tax savings for the owners over the next five years.
Identified a Tax Savings Scenario by Grouping Interrelated Businesses
Identified a tax savings scenario by electing to group interrelated businesses we enabled our client to treat otherwise passive income as non-passive for purposes of the 3.8% net investment income tax. By doing so, we were able to reduce the taxpayers’ current year tax liability by nearly $16,000.
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Used Missouri Historic Tax Credit Program to Decrease Project Costs
Our client recently performed a historic renovation on their headquarters, and installed solar panels as an integral component of the electrical system. Using our in-depth knowledge of the Missouri Historic Tax Credit Program, and contacts with the Missouri Department of Economic Development, we were able to turn what would have otherwise been unqualified project costs into an additional $5,000 in Missouri Tax Credits.
Accounting System Clean-up
In providing outsourced controllership and CFO services to a large rental real estate management company, we discovered significant issues with their accounting system and historical records. Our turn-around experts were able to efficiently uncover the areas of weakness, and have been transforming the accounting function from a burden to an effective business management and growth tool.
Performed Tax Savings Analysis on Solar Panels
In less than 24 hours, we were able to provide a tax savings analysis for our client who was installing solar panels. The analysis illustrated how the 1st year after-tax cash outlay would be less than 0.7% of the initial solar panel investment.
Global Connections Resolve Tax Issues
Our client, a US citizen, was set to inherit significant European real estate holdings. Using our international connections through LEA, we were able to put our client in touch with an accountant who could explain the international inheritance tax issues in a face to face setting while our client was traveling abroad.
Uncovered 179d energy tax credit savings
When an architecture client began designing government-owned buildings, we helped them discover they qualified for 179d tax deductions. Over the past three years, we have helped shelter over $400,000 of income.
Saved $240,000 through cost segregation
Our client purchased commercial buildings for $6.5 million. Through a cost segregation study, we uncovered a net present value savings of $240,000.
Used cost segregation to increase cash flow
Our client was considering purchasing an office building at a cost of $19 million. We suggested a cost segregation study, which generated an $800,000 net present value of after-tax benefits. Cost segregation analyzes buildings and identifies components that can be depreciated over 5, 7 or 15 years rather than the standard 39-year period. This reduction allowed our client to defer income taxes and increase cash flow.
Deferred taxes through multi-property exchanges
We helped a private real estate investor execute multiple 1031 exchanges. Like-Kind exchanges allow for the transfer of ‘like-kinds’ of investment property between taxpayers on a tax deferred basis. By using a combination of different strategies, we were able to defer $365,000 in taxes for this investor over a five-year period.