On Tuesday, February 17,
President Obama signed the American Recovery and Reinvestment Act of
2009 (ARRA). This nearly $800 billion bill allocates approximately 65%
to spending and investments and 35% to tax cuts.
WHAT DOES THIS MEAN FOR YOU? IT MEANS CASH BACK FROM UNCLE SAM!
a CEO or CFO of a mid to large organization or a commercial property
investor/owner, there are several IRS sanctioned tax benefits within
your reach designed to uncover hidden value and profitability within
your company and or real estate holdings. We specialize in assisting
CPAs, Architects and General Contractors on how to sort through and
identify areas of tax savings opportunity with in the recently passed
IRS Stimulus / Bail out package.
The IRS has set aside Billions of dollars in tax credits and or tax benefits relating to:
Commercial Real Estate Investments
Major Renovations / Tenant Improvements
Energy Efficiency Projects
Research and Development Tax Credits
Federal Tax Benefits for Commercial Real Estate
Engineering Based Cost Segregation Studies
commercial property has assets which have probably been overlooked –
per the IRS. Through our cost segregation studies, we work to uncover
potential tax savings and increase cash flow through reclassification
and depreciation of property. We provide a “Detailed Engineering”
review as part of our reporting process and works seamlessly with the
IRS and your CPA firm.
A tax strategy approved by the IRS in 1997 to reclassify specific real
property assets that usually receive a depreciation life of 39 years
(commercial real property) or 27.5 (commercial residential) into
“tangible personal property” that is treated as five (5) year property
or land improvements which are treated as fifteen (15) year property
for depreciation purposes. Due to improved treatment, portions of the
electrical, plumbing, mechanical systems, and site improvements of a
building along with hundreds of other components can be allocated into
shorter lives translating into immediate cash flow.
First-Year Bonus Depreciation is Back
You may remember
50% first-year bonus depreciation from a few years ago. Thanks to the
stimulus package, it's back for a return engagement — but only for new
(not used) qualifying assets that are both acquired and placed in
service during calendar year 2008. However, the placed-in-service
deadline is extended through Dec. 31, 2009, for certain long-lived
Needless to say, there are some ground rules. To be eligible for the 50% first-year bonus depreciation, an asset must be:
Purchased new during calendar year 2008 (no used assets need apply), and
Placed in service by Dec. 31, 2008, or by Dec. 31, 2009, for certain long-lived assets (explained below).
Federal Energy Tax Benefits
You may be eligible for a tax
deduction of up to $1.80 per square foot for improving the energy
efficiency of your existing commercial buildings or designing high
efficiency into new buildings.
The Energy Policy Act of
2005 was recently extended until 2013 and Includes a tax benefit for
investments in energy-efficient commercial building property targeting
three areas with in the building structure:
Heating and Cooling elements
To be eligible, the energy efficient commercial building
property, must be placed in service between January 1, 2006 and
December 31, 2007. Under section 179 D of the Internal Revenue Code for
the proposed or newly installed: lighting upgrades, HVAC, hot water and
building envelope, CORE can perform the certification process and
conducts this process in accordance to section 1331 of the Energy
Policy Act of 2005, Pub. L.No. 109 58,119 Sta. 594 (2005) enacted
Section 179 D of the Internal Revenue Code.
R&D Tax Credit Extended Through 2009
The US Congress passed the
Emergency Economic Stabilization Act of 2008 (EESA) today. As part of
the EESA, the R&D Tax Credit (Research Credit) was extended through
2009. This means it will apply to tax years 2008 and 2009.
Oct 30, 2008 – The US Congress
passed the Emergency Economic Stabilization Act of 2008 (EESA) today.
As part of the EESA, the R&D Tax Credit (Research Credit) was
extended through 2009. This means it will apply to tax years 2008 and
The R&D Tax Credit drives billions of dollars in economic activity
and keeps thousands of high-skilled jobs here in the US. The R&D
Tax Credit had expired at the end of 2007 and had failed several times
previously to be passed as parts of other bills in Congress.
Within the R&D Tax Credit, the Alternative Simplified Credit has
been increased from 12% to 14% for tax year 2009. This is a significant
In an effort to increase innovation and hopefully keep and increase
jobs here in the US, President Obama has included the cost of making
the R&D (R&E) Tax Credit permanent in his budget proposal for
Fiscal Year 2010.
Currently the credit needs to be approved every year. In fact in late
October 2008, the R&D Tax Credit was approved retroactively for
2008 and extended through 2009 as part of the Emergency Economic
Stabilization Act of 2008.
If the credit becomes permanent, it will help companies in budgeting
and planning their employee levels from year to year knowing that the
credit will be available for the coming year.
The 2010 budget needs to be approved by April 15 so our hope is that it
will be passed and include making the R&D Tax Credit permanent.
If we can't save your company money, you pay us nothing!