WARNING

*** READ THIS BEFORE STARTING ANY RETRO-FITTING OR RENOVATIONS *****

Bailout Failing You .... Tax Strategies Increase Cash Flow


Whether you are planning to Retro-fit your building with new Energy Efficient components, renovate or demolish building, you do not want to make a move until you have examined the current tax and your financial position - as it may impact your strategy and you might be leaving large tax deductions on the table and missing putting cash back in your pocket. Before you tear out, tear down or plow under, call us.

One irrefutable fact is that it is too late to realize any tax benefits when you are looking at a pile of rubble.

YOU CAN GET:

• Quicker depreciation deductions (39 years accelerated to 1 year)
• Generate a windfall of depreciation for the owner of investment or owner-occupied real estate
• Provides the advantage of writing off any "structural" components that are removed when new tenants move in
• Benefits are even greater than those of a Cost Segregation Study
• The value of disposed "structural" components is generally the highest cost spent in any given suite
• Owners who are not appropriately writing these off are leaving large amounts of money on the table and paying excessive tax
• An Abandonment Study allows you to claim these losses and significantly increase tax savings, cash flow and ROI

What’s Deductible and What’s Not:

Abandonment Studies can be a highly effective tool when used correctly with retrofitting and renovation projects. While it is well known that demolition expenditures are not deductible, an Abandonment Study can identify and then often allow property owners to write off many of the assets to be disposed of in a retrofit or renovation. In addition to accelerating depreciation on the existing structure and eventually the new improvements, an Abandonment Study can be used to identify the value of materials that are being retired (thrown away), so that the remaining balance can be fully depreciated in the current tax year. Lastly, the IRS does not allow a taxpayer to write-off arbitrary amounts based on cost per square foot, or other internally developed methods. Therefore, if you are planning to retro-fit or renovate an existing property and have not had a detailed Abandonment Study performed you may be overlooking significant tax benefits and loosing valuable cash back to your bottom line.
For commercial building owners doing Abandonment Studies, these one-year deductions are in addition to cost segregation deductions.

Get a Free Feasibility Study to Find Out Your Deductions, BEFORE You Tear It Out!

Key projects to look at:

• Energy Efficient Lighting Retrofits
• HVAC systems
• Roofing systems and Building Envelope
• 75% of the external walls are retained in place
• 75% of the existing internal structural framework

Timing is everything here, as the Abandonment Study must be done before the energy retrofit or renovations are started in order to property identify and value those items that may be replaced as part of an energy retrofit or renovation in the future.

Documentation is Everything:

The key is to know when and how to manage property investments in order to maximize tax benefits. Good timing and thorough documentation via an Abandonment Study or a Cost Segregation Study can make the difference.

Free Pre-Renovation Feasibility Study