Engineered Tax Services Newsletter

Solar installations are an increasingly popular investment for businesses and property owners, offering energy savings, environmental benefits, and tax incentives. But did you know that combining a solar installation with cost segregation can significantly enhance the financial returns of your project?

In today’s fast-paced economy, innovation isn’t just a buzzword—it’s a necessity. Businesses that prioritize research and development (R&D) gain a decisive edge, outpacing competitors and reshaping industries. The R&D Tax Credit, established under IRS Section 41, serves as a powerful tool to fuel this progress. Far more than a tax deduction, it’s a strategic resource for reinvesting in growth, hiring top talent, and accelerating market leadership.

Real estate investors often look at auto services facilities as solid, income-generating investments. These properties are typically in high demand, serve a broad customer base, and often require substantial upfront investment in specialized infrastructure. But are investors fully leveraging the financial potential of these assets?

In 2023, the owners of a gas station and carwash in Piedmont, South Carolina, undertook strategic tax planning to enhance their investment. The property consists of a single-story building originally constructed in 2000.

The building features amenities such as high-efficiency HVAC systems, walk-in coolers, and contemporary lighting fixtures. The property also includes fuel canopies, fuel dispensing pumps, and a carwash canopy.

The owners engaged Engineered Tax Services (ETS) to perform a comprehensive cost segregation study of the property. This study aimed to identify and reclassify specific assets, enabling the acceleration of depreciation and optimizing tax benefits. This case study outlines the cost segregation strategy employed and its significant impact on the financial outlook of the property.

In the ever-evolving landscape of auto dealership finance, one strategy has consistently proven its worth, especially during economic downturns: cost segregation. As we navigate the complexities of 2024, this approach has become increasingly crucial for dealership owners seeking to enhance their financial position and fuel growth.

Multifamily real estate investing offers an advantageous blend of consistent cash flow, potential for appreciation, and valuable tax advantages. In the dynamic economic environment of 2024, understanding and strategically using these tax strategies is more crucial than ever for achieving maximum returns. This guide dives deep into the essential tax considerations and strategies that astute multifamily investors should utilize to optimize their investments.