Construction tax planning uses a proactive approach to identifying additional tax benefits related to new and planned construction projects, including those associated with cost segregation. Accelerated deductions are identified by analyzing costs and documenting their design and construction based on federal guidelines that define tangible property from the stages of a construction project.

Items to be considered for optimal benefits include:

» Interior Walls (wall coverings, partitions, low walls)
» Ceilings (decorative coverings, tin, wood…etc)
» Flooring (removable, adhesive types, finishes)
» Miscellaneous Finishes (chair rail, crown molding)
» Warehouse Applications (driver areas, walls)
» HVAC, Plumbing & Electrical Systems (purpose & use)
» Buildings Attached Assets (canopies, decks, flagpoles)
» Typical Site Improvements (landscape, walks…etc)

Getting a specialty tax engineering firm with expertise in cost segregation involved in the pre-design phase allows subject matter experts to properly identify the materials and methods, direct and indirect, for personal property and land improvements in order to qualify for the maximum accelerated depreciation deductions (i.e., 3, 5, 7 or 15 year personal property classifications). Our ETS Construction Tax Planning engagement team will also analyze I.R.C. Sec. 174 embedded costs, indirect costs, and professional fees (soft costs), during the planning and design phases of a construction project, allowing for an immediate tax deduction in the year the cost is incurred.