A Proactive Approach to Identifying Tax Benefits – Construction Tax Planning

“Construction tax planning is the best way to ensure that you get the most benefit BEFORE construction begins. “


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.

If you are contemplating a new commercial project or renovation, please contact us to discuss Construction Tax Planning and our cost segregation services to ensure that your project takes advantage of every tax incentive that you deserve.

Request a Free Benefit Analysis to identify an estimated benefit and ensure a cost segregation study makes sense for your construction business. To learn more about cost segregation studies, call Engineered Tax Services at (800) 236-6510 or visit cost segregation page for more information.

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