Cost Segregation:

Many commercial real estate property owners are improving cash flow and finding immediate tax savings from their business properties. They are finding these benefits from an unexpected source: The Internal Revenue Service. They are taking advantage of the significant tax benefits from accelerated depreciation deductions for commercial properties supported by more than 200 court cases, Treasury regulations and IRS revenue rulings.

Cost segregation is an IRS-sanctioned technique allowing business owners to accelerate depreciation deductions on their properties. According to the IRS guidelines, a properly performed cost segregation study is based on a detailed engineering analysis. The analysis involves a thorough review of engineering and architectural documents, cost data, AIA Documents, as well as an on-site inspection of the property. These studies allow property owners to get the most out of their facility and maximize the tax benefits available to increase cash flow.

Kinzey CPA, LLC has a business relationship with Think, LLP that provides the cost segregation studies.  Click on their website link for more information https://thinkllp.com/cost-segregation/

R&D Tax Credit (Research and Development):

Since 1981, the Federal R&D Tax Credit has been meant to incentivize innovation within the United States…and much more!  In fact, 2003 IRS regulations replaced a “discovery test” with much broader requirements in order to qualify for the credit.  Now, when a US company is trying to develop a new or improved product, process, technique, formula, technical design or software, it no longer needs to be new to its industry in order to qualify – it only needs to be something new to the US company.

Companies claim billions of dollars of Federal and State R&D Tax Credits each year. However, billions of dollars of R&D credits go unclaimed each year because companies are not aware that they qualify. In addition, many companies that are taking the credit are not claiming all of the credits to which they are entitled. Now a permanent fixture of the Internal Revenue Code, the R&D Tax Credit is a significant and immediate source of cash for companies of all sizes and in most industries.

Who Qualifies: A US based company that is trying to develop a new or improved product, process, technical design or software while using at least one of the hard sciences, such as chemistry, biology, or physics. They must maintain some degree of technical uncertainty on the onset when they are trying to develop or improve that process as well as bare the economic risk of the research.

“Start-up companies” (companies with less than $5 million of gross receipts for the year and with no gross receipts more than five years ago) can now use their Federal R&D tax credits to reduce a significant portion of their Federal payroll taxes.

Kinzey CPA, LLC has a business relationship with Think, LLP that provides the Research and Development (R & D) credit studies.  Click on their website link for more information: https://thinkllp.com/rd-tax-credit-services/