Construction Tax Planning

Engineered Tax Services’ pre-construction tax planning services offers the best way to ensure that you get the most benefit BEFORE construction begins. We will evaluate your project to ensure that you qualify for:

Federal incentives for energy efficiency

State and local rebates and incentives

LEED commissioning

Proper liability insurance coverage

Accelerated depreciation on all applicable building components

….and more.

By understanding all requirements of these valuable tax incentives, and utilizing our construction tax planning team of architects, general contractors, engineers and CPAs evaluating the project, you will be able to secure millions of dollars in additional savings.

 

Examples of Property Components Qualifying for Accelerated Depreciation

Accelerated deductions are identified by analyzing costs and documenting design and construction based on federal guidelines. These guidelines define tangible property from all stages of a construction project.

Examples of Property Components Qualifying for Accelerated Depreciation

 

Interior walls (wall coverings, partitions, low walls)

Ceilings (decorative coverings, tin, wood and more)

Flooring (removable, adhesive types, finishes)

Miscellaneous finishes (chair rail, crown molding)

Warehouse applications (driver areas, walls)

HVAC, plumbing and electrical systems (purpose and use)

Buildings’ attached assets (canopies, decks, flagpoles)

Typical site improvements (landscape, walks and more)

Accelerated deductions are identified by analyzing costs and documenting design and construction based on federal guidelines. These guidelines define tangible property from all stages of a construction project.

Our ETS Construction Tax Planning engagement team will also analyze I.R.C. Sec. 174 embedded costs, indirect costs and professional fees (soft costs) during the planning and design phases of a construction project, allowing for an immediate tax deduction in the year the cost is incurred.

Getting ETS involved in the pre-design phase allows our construction tax planning subject matter experts to properly identify the materials and methods, direct and indirect, that maximize personal property and land improvements that qualify for accelerated depreciation deductions (i.e., 3-, 5-, 7-, or 15-year personal property classifications).

Form 3115

Please note: Form 3115 is NOT filed because construction tax planning is proactive and not reactive, so there is no need to reclassify asset classifications as they are properly categorized when they are placed into service. This reduces IRS audit risk as Form 3115 is never filed; consequently, there is never an accounting method change.

If you are contemplating a new commercial building project or renovation, please contact us to discuss construction tax planning to ensure that your project takes advantage of every tax incentive that you deserve.

To learn more about our construction tax planning services, please complete the form below or contact Engineered Tax Services at (800) 236-6519