Real estate assets: significant tax deduction and tax credit opportunities.

TMO Consulting’s engineering-based Cost Segregation Services team can help owners of commercial or residential buildings increase cash flow by accelerating federal tax depreciation of construction-related assets. Opportunities exist for newly constructed buildings, newly acquired buildings, buildings constructed or acquired in prior years, and significant remodel, renovation, or expansion activities. With the passage of 2017 tax reform known as the “Tax Cuts and Jobs Act” (TCJA), “used” property is now eligible for 100 percent bonus depreciation, which provides an added boost to accelerate tax depreciation in the first year an asset is placed in service.  Depending on the type of building and cost, the current increased cash-flow and time-value benefits are often significant.

The IRS has stated that cost segregation studies should be performed by “personnel competent in design, construction, and estimating.” The in-house team at TMO Consulting is comprised of specialized engineers, construction professionals, and licensed CPAs to provide a full-service approach to cost segregation.

TMO Consulting performs detailed engineering cost segregation analyses to increase clients’ cash-flow. Our team will:

  • Identify construction-related assets that qualify for accelerated depreciation and bonus depreciation where applicable.
  • Perform retroactive cost segregation analyses of facilities that were either constructed or acquired in prior years, without amending any returns.
  • Determine available federal and state Historic Tax Credits related to rehabilitations of older buildings.
  • Identify green energy tax incentives for newly constructed or renovated buildings.

Maximizing tax benefits for fixed assets.

IRS regulations for capitalization of tangible property and disposition of property address whether and when acquisition, production, maintenance, and improvement costs must be capitalized or deducted. TMO Consulting’s Fixed Asset Services team works collaboratively to comply with these regulations, identifying tax savings opportunities and specific benefits. We perform a broad review of cost recovery methods utilized in current and prior years for each fixed asset, to determine whether an accounting method change is in order. This often provides significant savings in the current tax year.

Our fixed asset advisory services include:

  • Cost Segregation Studies
  • Repairs & Maintenance Expense Studies
  • Fixed Asset Management & Retirement Studies
  • Best Practice Advisory & Training
  • Input and Reporting Template Development
  • Fixed Asset Data Reconciliation Services
  • Fixed Asset Data Input/Upload

Green Energy Tax Services
There are tax benefits of going green. BDO can help identify available federal, state, and local green energy tax credits related to investments in energy efficient and sustainable building technologies.