The amount of savings realized
will vary depending on your specific expenditures,
business operations, and other financial factors.
However, most facilities usually derive benefits
such as:
-
Increased cash flow
(resulting in
increased cash
available for new
projects) through
accelerated federal
tax depreciation of
construction-related
costs
-
Substantially
reduced corporate
and possible
individual income
taxes
-
Net present value
savings on federal
tax depreciation
-
Potential reduction
of state and local
real estate and
personal property
taxes
-
Maximized tax
credits
-
Opportunity to claim
“catch-up”
depreciation on
misclassified assets
-
Potential ability to
better manage your
capitalized assets
-
Our independent
analysis, which we
will provide and
which can be used in
the event of IRS
scrutiny.
-
Reduce corporate and
individual income
taxes
-
Reduce real estate
taxes by shifting
value from real
property to personal
property
-
Reduce personal
property taxes by
accelerating the
write-down of
personal property
-
Increase corporate
net income (after
tax) by reducing the
corporation’s
effective tax rate
-
Help provide
corporations and
investors with
increased cash flow
-
Help investors
maximize the tax
credits they can
claim
Provided investors
with additional cash
to reinvest in new
projects
-
Allow a corporation
or investor to claim
“catch-up”
depreciation on
assets that have
been previously
misclassified as
real property
-
Help investors and
corporations manage
their investments in
capitalized assets
Reclassifying a building or
leasehold improvement from the traditional 39-year
depreciation period to a five-year classification
results in a net present value benefit of 21 cents
on the dollar. A switch to a seven or fifteen-year
classification would represent a 19 cents and
11 cents net present value benefit, respectively.
