Cost Segregation Services

Unlock your cash flow and reduce your tax bill with cost segregation studies! Thanks to the Tax Cuts and Jobs Act of2017, these are more beneficial than ever. By analyzing your real estate assets, we can identify parts of your property that qualify for faster depreciation—turning 39 years into just 5, 7, 10, or 15 years! Don’t miss out on valuable deductions—boost your tax savings today!

Tax Depreciation Optimization

Many companies misclassify fixed assets in their accounting systems, which can lead to missed depreciation deductions or incorrect asset depreciation. Navig accelerated depreciation deductions under tax laws can be complex due to several factors: limited invoice details for real estate construction assets, minimal oversight from the Tax department, acquired business assets causing tracking issues, and major ERP systems struggling with accurate tax reporting amid changing tax laws.

Depreciation optimization results in additional deductions that generate significant cash flow and reduce tax liability at both the federal and state levels in the current tax year. “Missed” depreciation can be captured in the current tax year via Section 481(a) adjustment, utilizing an automatic Form 3115, Application for Change in Accounting Method – No need to amend prior tax returns!

Depreciation Optimization studies will put your company in the most advantageous tax position for all currently capitalized assets.  To ensure all prospective assets are appropriately capitalized, Centiv offers Tax Depreciation Outsourcing services.

Tax Depreciation Outsourcing 

In today's complicated tax landscape, corporate tax departments struggle to keep up with the demands of calculating for federal and state compliance. They face challenges from changing tax codes, mergers, and inadequate ERP system support. This often leads to a lack of confidence in their depreciation calculations, causing them to manage tax accounting offline. Additionally, many companies misclassify fixed assets, which can result in missed deductions and potential IRS audits. Ensure your company maximizes its tax benefits.

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Benefits of Outsourcing:

• Enable tax department resources to focus on other value-added activities

• Identification of areas to improve the capitalization process or optimize fixed asset positions on an annual basis

• Review and validation of your company’s asset data each period

• Support for short period calculations, state decoupling, and ADS depreciation calculations 

Tangible Property Regulations Review

In September 2013, the IRS and Treasury Department introduced final Tangible Property Regulations, also known as Repair Regulations, which affect all taxpayers who improve, replace, or acquire depreciable property. Many companies tend to over-capitalize costs for tax purposes by following financial accounting rules, which can be less favorable than the guidelines in the Repair Regulations. Centiv Fixed Asset specialists are well-versed in the tax laws and industry rulings related to these regulations. With their expertise, Centiv can conduct a review of your current policies to ensure compliance with the Tangible Property Regulations.

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Identified repair and maintenance deductions can generate significant cash flow and reduce federal tax liability in the current tax year.  “Missed” repair deductions can be captured in the current tax year via Section 481(a) adjustment, utilizing an automatic Form 3115, Application for Change in Accounting Method – No need to amend prior tax returns!

Green Energy Tax Credits

​Green Energy Tax Credits (GETC) have been extended and are gaining support from lawmakers. These credits help both developers and property owners save on taxes. Centiv specialists can help calculate and claim the three most common GETCs. The most beneficial one is the Section 45L Energy Efficient Home Tax Credit, which offers $2,000 for each home. To qualify, a building must meet specific energy efficiency standards set by the IRS. Centiv specialists will review building plans for free to check eligibility, especially for low-income housing projects.

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