What Are Cost Segregation Companies?

Cost segregation is a technique that is applied by construction owners to increase the short term cash flow in the company and increase their profits. It is a tax-cutting method that is applied by most businessmen where they defer their tax liability in favor of an accelerated depreciation price on a fixed asset.

Lindon engineering services offer some of the best solutions in this regard. We have a team of the best business analysts and economic professionals who are well-versed in the legalities of the concept. We are among the best cost segregation companies in the area offering tailor-made measures for your company that match your profile.

You can visit our website to know more about our services and charges. And if our packages interest you then feel free to drop us a call or send in an email stating the kind of services you want.

Read More

What is the Best Way to Save Tax on the Income in a Company?

All businesses want to raise their profits by cutting down on the amount that flows out of their farm. A recurring factor that depletes your precious funds is taxes and a major chunk of the profit each year goes towards paying them. Most people take it for a given fact and cannot imagine that there may be means to save on your taxes as well. But in reality there are legal means and methods by which you can considerably bring down your amount of tax and save precious funds which can be directed towards other utilities. Foremost among these methods are Cost segregation. Cost segregation is the method of calculating your taxes that helps you in identifying your personal property from among the group property before filing your taxes. This considerably brings down your amount of taxation. A number of leading consultancies also provide you with these services.

Read More

How to Do Simple Cost Benefit Analysis

The global economy is expanding each day, providing space to new business ideas. Commercial business has grown at an unprecedented speed in the last decade. It’s difficult to make smart business choices keeping in mind the market risk and competition. However, it is not completely impossible to improve your business ideas. A cost-benefit analysis is an effective technique for developing successful business models. It helps you to choose the best among the various alternatives. It minimizes the market risk and maximizes the benefits amidst existing market conditions. Various Engineering Cost Analysis Strategies recommend cost-benefit analysis as an effective business decision making process. It is the analysis process should be carried out by experts who know the industry. Always do a cost-benefit review of your business plan for best and long-lasting results.

Read More

Get the best business solution services

The advantages of business solution services are found where customers need help with costs savings, and Lindon Engineering can provide optimised processes and increased productivity and efficiency of any product to achieve that means. Lindon engineering can provide services and methods like inventory control, forecasting, facility layout design, space utilisation analysis and more so that you can evaluate and improve on current processes. Lindon Engineering has a three step procedure to help your company: problem, analysis and solution. No matter how big the task, or minor the process might seem, they have a way to reduce operational costs of all kinds. Find out if your employees or machines are underutilised, cut down on unnecessarily high transport costs, all with the help of Lindon Engineering.

Read More

What are the Benefits of Cost Segregation Analysis?

A cost segregation analysis includes a strategic process in which a cost segregation analyst analyzes commercial real estate so as to decide that whether segregating and identifying certain parts of the property as that of a personal property, which will appear somewhat different and striking from a real estate property. And this will lead to a number of depreciation benefits that will comply various tax purposes. The primary objective of a cost segregation analysis is to segregate property assets into four main groups. They are the land improvements, buildings or structures, personal property & land. There are innumerable benefits of going for a cost segregation analysis by an adept cost segregation analyst.

Read More

Save taxes by Cost Segregation Study Analysis from Lindon Engineering Services

Bought a building recently? Built or thinking of building any new building recently? Then the short-term cash flow from that real estate can be increased by deferring their tax liability in favor of accelerated depreciation. A company experienced in these matters is an important help for a client. If the client is thinking about achieving a steady short-interval cash input from a newly acquired real estate, then it is best to subject the property to a Cost Segregation Study Analysis by hiring a company that has extensive experience in this field. The firms of Lindon Engineering Services have been doing this job for their clients on various pieces of property. They have reclassified and performed accelerated depreciation on a large variety of properties including retail outlets, manufacturing capabilities, nursing homes, hotels, surgical centers, apartment complexes, distribution centers, office buildings, automobile dealerships, medical or dental clinics and many more. Their methods are time-tested and are very effective in reducing the tax load of the property-owning client. A call to their business before buying, building, and remodeling any property will be an intelligent decision.

Read More

What Are The Benefits Of Cost Segregation Calculator?

Cost segregation is viable avenue for commercial organizations to escalate their short range flow of cash by rescheduling their Tax legal responsibility in the favor of pushed depreciation on competent assets. Generally, cost segregation examination is performed on newly formed facilities, but however newly acquired structures can also be focused to cost segregation study no matter the age. To do the job of cost segregation, you can always ask the aid of Lindon Engineering services which can perform these examinations by seeing which assets can get reclassified according to the usage or functionalities. One should always remember that calculators for cost segregation should only be used for the purpose of estimation. Complete cost segregation studies will use much more sources and information into account and the ultimate results of complete studies may vary massively from the results obtained from a calculator.

Read More

Allow The Best CPA Consultants To Perform Auditing Services

A Certified Public Accountant or CPA are individuals, holds a lot of importance in the business and accounting services. They get to play an advisory role during the past performance of a particular business. The Lindon Engineering Services Company currently holds the top position to be the best CPA Consultants of all time. Therefore, this post looks at the company’s services and their methods, through which they serve their clients during their time of need.

When you are looking forward to holding an audit session at your company, seek help from the Lindon Engineering Services Company and get the help and services you require the most. The company and team are engineers, and they perform all the services that a CPA firm company can provide.

If your business needs any assistant on CPA and other services, get in touch with the experts from a good CPA firm and get to meet all your goals.

Read More

What are the Factors of Being a CPA to Start a Tax Preparation Business?

A Certified Public Accountant or CPA delivers layers of advantages to any business. This post explains that they can carry out full-fledged auditing services, which is out of the scope of other accounting professionals. Their expertise on cost segregation helps to increase the flow of cash by delaying your tax liability with accelerated asset depreciation. A competent CPA consultant will be capable of doing tax and account consulting, act as a financial and business advisor, and give out auditing services to many companies and corporations in the industry. A good CPA and his team will be hired to provide services in accounting, by maintaining financial records, applying for business loans, filling of taxes, and planning for the long term.

Read More

Cost Segregation Consultants - Experience, Benefit & Overview

As a federal income tax tool, cost segregation offers immense value to companies as well as individuals who go for construction, purchase, expansion, or renovation of real estate properties. This post looks at the goals of Cost Segregation Consultants, i.e. to identify and reclassify such properties, so that those are eligible for depreciation over a period of 5, 7, and 15 years at accelerated rates. It helps business owners to boost the depreciation expense and subsequently bring down the amount of tax payable resulting in substantial cash flow. Another advantage of going for cost segregation study is that it provides the scope to accelerate the depreciation twice on the same property. To avail of these benefits, it is vital to hire the services of an experienced cost segregation consultant, who can employ architectural engineering knowledge along with tax law experience to identify the elements that are eligible for accelerated depreciation rates.

Read More

3 Steps of R&D Activities You Need To Know

At Lindon Engineering Services, our Research and Development Tax Credit activities span the investigation of business activities to improve or create products and/or procedures. The 3 steps include Basic Research (The exploration to obtain a more complete understanding of fundamental aspects of a concept), Applied Research (The investigation of methods to obtain specific objectives regarding product or processes), and Development Research (The examination of the implementation of research knowledge and designs for production). Starting R&D is best when the market is slow, or if due to the nature of the product, it can be protected by patents and copyrights. It might also mean incurring a negative cash flow till the results from the R&D are positive. However it is not considered a loss making proposition, The Research and Development Tax Credit, made permanent through the Protecting American Against Tax Hikes (PATH) Act during 2015, allows companies to avail of credit for qualified research activities and expenses, thus lowering the impact of negative cash flow.

Read More

All you need to know about IT Asset Disposition

IT Asset disposition is nothing but a process that helps in restoring and reselling the unwanted equipment in a safe and eco-friendly manner. Companies with torn down equipment mostly face a confusion of whether to renovate or re-use the equipment.

The main responsibility of IT Asset disposition is to increase returns and limit costs resulting in optimum data security. Security means the device equipment must be thoroughly cleaned. Eco-friendly devices must be disposed of in the right way; otherwise, companies may face a penalty.

IT disposition may include services like tracking of Assets and data destruction. They are also responsible for recycling and reselling of equipment. Additional legal compliance of equipment should be ensured and eradication of software for tattered devices should be done so that they can be used for other functional equipment.

Therefore, secure IT Asset disposition processes for old equipment are mandatory so that companies don’t face any fines.

Read More

Cost Segregation Audit Techniques Guide Table of Contents

Cost segregation is generally utilised for businesses to increase their short-term cash flow. It is done by submitting tax liabilities in favour of specific accelerated depreciation on qualified assets. Cost segregation analysis is important since it classifies assets for computation of federal tax. The benefits of cost segregation depreciation include a reduction in current tax liability, assisting in the deferral of taxes, immediate increase in cash flow and the payers also get a chance of reclaiming missed deductions of previous years. Cost segregation doesn't work on short term holds. It uses depreciation to offset your taxable income and reinvest those funds to update the property. And it is not at all expensive. If you have bought a new building or you built a new building or remodeled or expanded an existing building, you can make use of this cost segregation analysis.

Read More

Apartments & Cost Segregation

One of the primary goals for a property owner is to maintain a steady cash flow since it is a key indicator of the financial health for any business. An often-overlooked method for increasing cash flow is through a cost segregation study. There are several advantages for a property owner to have a cost segregation study performed, but perhaps the most appealing reason allows an owner to accelerate the depreciation of real property which reduces current year taxable income thus producing a cash stream by deferring taxes to future years.

Real property, which includes the structural components of an apartment building, is generally depreciated over a lengthy 27.5 years on a straight-line basis; however, IRS guidance and case law allow components of an apartment building’s cost to be reclassified from 27.5 years to personal property depreciated over 5, 7, and 15 years at accelerated rates.

Although cost segregation studies are one of the most valuable tax strategies available to owners of commercial real estate today, it is advised that a qualified engineer performs the study. An engineer provides a breakdown for each component of each building. For an apartment complex, many of the items segregated are those related to tenant amenities, for example a swimming pool. There is a wide range of building components, such as electrical installations, plumbing, mechanical components, and finishes that can be identified and reclassified into shorter-lived asset classes. Components identified as land improvement property including excavation/grading, asphalt paving, landscaping, fencing, etc. can also qualify for increased depreciation. This adds up to substantial savings to the client.

As an example of the value of a cost segregation study, a recent purchase of an existing apartment complex netted a cash flow of $456,050 over the life of the facility based on the reclassification of 34% of the total purchase price (i.e. $10.62 MM0) to 15, 7 and 5-year property. In another purchase, an owner was able to secure a net cash flow increase of $864,280 over the life of the apartment complex. The purchase price of the facility was given as $24.1 MM with 27% of the assets reclassified as 15, 7 or 5-year property.

Apartment complex owners can use a qualified cost segregation study as a financial management tool to aid in their tax, accounting and insurance planning. Virtually every taxpayer who owns, constructs, renovates, or acquires a commercial real estate structure stands to benefit from a cost segregation analysis. This popular tax strategy offers facility owners the opportunity to defer taxes, reduce their overall current tax burden, and free up capital by improving their current cash flow.

Content Source

Read More

CONVEYING SYSTEMS

By: Donald Archer

One of the topics we receive considerable inquiries relates to conveying systems in auto dealerships and other commercial businesses. Conveying systems consist of equipment that move materials or people and include passenger conveying systems, parts lifts, freight elevators, vehicle lifts and material hoists. The function of each conveying system determines its useful, depreciable life.

Passenger conveyor systems such as elevators, escalators, and moving sidewalks are used to transport passengers in horizontal, vertical or inclined directions. These systems and their associated components including handrails and smoke baffles, for example, are designed to remain in place and are considered 39-year real property since they relate to the normal operation of the building.

Parts lifts, belt conveyors, roller conveyors, etc. are used to move supplies or materials, typically to a storage room or mezzanine located on another level. These are similar to elevators except they are usually not equipped to move people and may lack some of the safety equipment found on elevators. Most parts lifts/conveyors are self-supported, requiring no structural modification to the building. Because the primary function of these lifts is moving inventory and other materials used in the business they are typically classified as personal 5-year property.

Freight elevators are designed to carry goods rather than passengers; however, since they are designed to carry passengers as well as materials, they have been associated with elevators and have a useful, depreciable life of 39-years. Freight elevator designs are more durable and less aesthetic and they vary from parts lifts because they travel faster, travel to greater heights, have greater capacities and have automatic operation. Of particular note are the elevators that move automobiles in multi-story dealerships and parking garages. These items have typically been considered to be similar to passenger elevators and assigned a 39-year life despite the fact they serve a unique function related to product handling.

Vehicle lifts and hoists are considered to be tools/equipment in maneuvering automobiles or their components into maintenance positions and are treated as personal property with a 5-year depreciable life. Cranes, overhead hoists and trolley beams will be discussed in a future newsletter because of their unique applications.

Finally, mechanical, electrical and instrumentation utilities supporting the conveying equipment deemed to be personal property should likewise be depreciated as 5-year personal property. Mr. Archer is a Civil Engineer with a Masters degree in Business Administration and a Masters Degree in Engineering Management. He is an Adjunct Professor of Engineering Management at the University of Louisville and is the President of his own engineering company, Lindon Engineering Services, Inc.

Content Source

Read More

Space Utilization

By: Jacob Read

When an organization realizes that its operations are growing beyond the current usable space, they may decide to expand the existing facility. Often this is not necessary, and can cost the company in terms of expensive construction. Rather than expanding, better space utilization can provide more usable space in the current dimensions of the facility. Low space utilization is a result of a poor layout, which can be caused by inefficient operations and material flow.

Read More

Business Solution Services

By: Donald K. Archer

In the course of our many cost segregation studies, we have had the opportunity to visit many of our client’s facilities and observe first-hand their space utilization and methods of operation. All too often, the layouts and operations contributed to the overall inefficiency of the facility thus increasing the cost of the operation or worse – losing customers. Accordingly, we have launched a new service that is aimed at identifying inefficiencies, developing solutions for dysfunctional operations and improving operations and decreasing operating costs.

Read More

Building a Good Defense Case

By: Paige Eaton

It’s a no-brainer that cost segregation studies can create a substantial cash flow for your business. But the risk associated with decreasing your tax burden can be an unwanted audit from the IRS. Building a good defense is the only way to diminish the risk. The methods that provide a sense of security are as follows:

Read More

MEZZANINE SYSTEMS

By: Donald Archer

 

Recently we have performed a number of cost segregation studies on facilities that have acquired additional storage space by utilizing a mezzanine system. Mezzanine systems fall into one of two categories, (1) those that are permanent structures and (2) those that are modular or free standing.

Read More

What is Depreciation?

By: Donald Archer

Having completed more than fifteen hundred cost segregation studies, I have come to realize many of our clients do not understand the concept of depreciation as it relates to their businesses. Many of my students likewise had a vague idea of depreciation and its value as a measure of a company’s worth. Simply stated, depreciation is the cost a company charges itself for the use of an asset it has purchased for the purpose of earning revenue.

Read More