ELB Consulting, Inc. Engineered Commercial RE Solutions

reduce taxes. increase cash flow. improve building performance.

Cost Segregation | EPAct 179D & 45L Energy Tax Incentives

R&D Tax Credits | ASHRAE Energy Audits | Cost Recovery

Disposition/Abandonment Studies | Fixed Asset Reviews

“Cost Segregation is a lucrative Tax Strategy that should be used in almost

every purchase of commercial real estate.” – IRS, WSJ

“As a practical matter, cost

segregation studies should be applied by the taxpayers.”

– Internal Revenue Service, US Department

Cost Segregation

What is Cost Segregation?

Allows building owners to depreciate buildings

(new/existing) in the shortest time permissible under

IRS tax laws, thus minimizing their overall tax liability

Benefits:

An immediate increase in cash flow

A reduction in current tax liability

The deferral of taxes

The ability to reclaim "missed" depreciation deductions

from prior years (without having to amend tax returns)

How does Cost Segregation work?

Significant savings are hidden in your walls, your floors, built-ins, your ceiling, and even your landscaping outside

Certain components previously classified with a 39 or 27.5 year life, can be classified as personal property or land improvements; applying a 5, 7 or 15-year depreciable life

A “fully engineered” study quantifies all a property’s major components and leasehold improvements; so when these assets are replaced or renovated, any life remaining may be ‘retired’ or written off

Cost Segregation & ELB

ELB methodology delivers ‘Fully Engineered and Accounted’ Studies, the highest level as identified by the I.R.S. guidelines

Over 10,500 studies have been completed to date, and never a study rejected by the I.R.S.

One of our principals, Eric Ernst serves as a U.S. Tax Court Expert Witness on cost segregation

All studies are backed by our Quality Assurance Guarantee and no-cost defense of study

Cost Segregation & ELB

Our ‘fully engineered’ analysis of commercial property will identify ALL qualified (5,7 & 15 yrs) and non-qualified (39 or 27.5) building components; which complies with the Repair and Maintenance Regulations updated in 2014

Our detailed report also serves as a Fixed Asset Tool, our competitors charge extra for this

ELB bridges the gap between detailed engineering, construction and accounting practices

Suitable for All Property Types

Apartments (Mid/High) – 7 to 20%

Apartments (Garden) – 15 to 45%

Assisted Living -15 to 25%

Auto Dealerships – 20 to 35%

Bank Buildings – 20 to 45%

Car Washes – 20 to 40%

Convenient Stores – 20 to 45%

Distribution Buildings – 10 to 15%

Fitness Club – 20 to 30%

Golf/Resort – 30 to 70%

Hotels – 20 to 35%

Manufacturing – 30 to 75%

Medical Office – 25 to 50%

Office Building – 10 to 25%

Pharmacy – 10 to 35%

Printing Facility – 15 to 30%

Research Building – 20 to 60%

Restaurants – 20 to 40%

Retail – 15 to 35%

Self Storage Facility – 20 to 80%

Supermarket – 22 to 40%

Shopping Center – 20 to 40%

Tenant Space – 22 to 60%

Warehouse – 8 to 18%

Green Energy Tax Incentives

The Energy Policy Act of 2005 (“EPAct 2005”) established federal tax deductions for all qualifying investment costs in that improve energy efficiency of the whole building, or for the three building subsystems: lighting and lighting controls; HVAC/Hot Water; and the building envelope

Commercial |179D Tax Deduction (up to $1.80/sf)

Residential | 45L Tax Credit ($2,000/unit)

R&D Tax Credits

Made permanent in December 2015 by PATH Act

The Research & Experimentation Tax Credit (aka the R&D Tax Credit) is a business tax credit allowable under I.R.S. Revenue Code Section 41, for firms that incur research and development expenses for the further development of their products and services

Businesses of all sizes, across multiple industries may qualify; biotech, telecommunications, consumer products, food & beverage, architectural design, construction materials, pharmaceutical, electronics, chemical engineering, aerospace, etc.

ELB Consulting | Other Services

Cost Segregation Design Guidance

Repair vs. Capitalization Review

Tangible Property Repair Regulations

Engineered Insurance Replacement Appraisal (DEIRA)

Construction Audits

Fixed Asset Analysis and Review

LED Retrofit Lighting solutions

A few of our satisfied clients

reduce taxes. increase cash flow. improve building performance.

Bill Smith ELB Consulting, Inc.

480.747.5547

bill@elbcostseg.com

ELB Consulting, Inc.