Cost Segregation Study | TaxConnections

16 Dec 2022

Smart Way To Increase Your CPA Firms Annual Revenue

Good News For Small And Medium Size Tax Firms!

Small and medium sized tax firms nationally are benefitting from new revenue streams by offering R&D tax credit and cost segregation services to their clients. Many firms are growing by offering more diversification in services offered to their client base, thereby deepening long-term client relationships.

Any time your tax services firm can differentiate itself by offering a specialty niche, you have the opportunity to stand out from your competition while providing extra value to clients. Many firms are outsourcing R&D tax credit and cost segregation services to tax services firms, both of which can generate a fresh stream of revenue with little or no capital investment. Your firm should identify current clients that will benefit from R&D tax credit or cost segregation services. Legislative changes make cost segregation and R&D tax credits even more valuable to your clients. The reality is, if you aren’t already offering these services, other firms will.

Written by TaxConnections Admin | Posted in Cost Segregation Study • R&D Tax Credit Study

08 Dec 2022

3 Top Cost Segregation Trigger Events In Real Estate Life Cycle: Know Them To Proactively Recognize Savings Opportunities

3 Cost Segregation Trigger Events In Real Estate Life Cycle

While cost segregation is useful throughout the real estate life cycle, there are certain events that tee up particularly strong cost seg opportunities. These events should automatically trigger consideration of a cost segregation study, since picking the right moment can maximize benefit. Read on for our top 3 cost segregation study triggers – so you can proactively recognize opportunity.

1. New Construction of Commercial Property

Cost segregation takes advantage of the time value of money by front-loading depreciation to the early years of ownership. As such, to maximize savings from Year 1, a cost seg study should ideally be performed as soon as a newly constructed property is placed-in-service.

Consider a newly constructed hotel placed-in-service in 2021 (100% bonus in play.) Capstan was retained to perform a study immediately after construction was completed.

Written by Bruce Johnson | Posted in Cost Segregation Studies • Tax Savings Opportunities

05 Oct 2021

Value Of Cost Segregation Study: Multifamily Residential Property

Renting is more popular than ever – the population of renters in U.S. cities has increased by over 30% since 2000. This has driven a commensurate increase in multifamily construction, and developers are striving to stand out from the pack. Current trends for attracting and retaining residents include time-savings services, flexible wellness zones, and pet-friendly amenities. These “extras” are attractive, but also add to a developer’s bottom line, and many seek out tax savings strategies to offset some of this initial investment.
Project MF is a 457,000SF rental community on the east coast. The facility consists of one four-story building, including 256 apartment units of various configurations. Of these, approximately half are standard apartment rentals, while the remaining units are fully furnished extended stay suites, available with month-to-month
leases. The developers of Project MF wanted to create a place tenants could live, work, exercise, and socialize, and were prepared to provide all the extras. With a depreciable basis exceeding $107M, the property includes a community lounge, conference rooms, café, fitness center, outdoor swimming pool, basement parking garage, and much more.

Written by Bruce Johnson | Posted in Cost Segregation Studies • Multifamily Residential Property