Cost Segregation Studies
Have you recently constructed, renovated, expanded or purchased a building? You may have significant untapped tax savings in your property and facilities. A cost segregation study identifies, segregates and reclassifies building related expenses to obtain a substantially shorter depreciable life. As a result, property owners lower their tax liability, improve cash flow and increase return on investment.
William Vaughan Company’s engineered-based cost segregation study team can help you evaluate the cost of a study in relation to your benefit. Our extensive knowledge of tax law combined with the expertise of the engineer lends detailed supporting documentation required by IRS regulations and requirements for audit defense. Our experience allows us to provide you with the ideal cost segregation strategies for your particular business, and ensure that your depreciation deduction benefits are maximized.
Who Can Benefit?
If you have purchased, constructed, remodeled, or otherwise acquired real estate (real property) after January 1, 1986, you qualify for this service.
What Types of Items Are Identified?
A thorough engineer-based cost segregation study will identify a wide range of building components such as electrical and piping systems, decorative and special finishes, lightings, wall coverings and parking lots, among others.
Why Engage A Specialist?
For both new and existing properties, the IRS recommends an engineer-based cost segregation study. Preparation of a cost segregation study requires knowledge of both the construction process and tax laws involving property classifications for depreciation purposes. In general, a study conducted by a certified engineer is more reliable and guaranteed to realize the maximum depreciation benefits.
Considering cost segregation? Our team can provide you a free analysis of the potential tax savings before engaging in the full study so you can make an informed decision.
Does your closely-held business export products or services internationally? You may be eligible for a unique tax-savings opportunity through the creation of an Interest Charge – Domestic International Sales Corporation, or IC-DISC. An IC-DISC allows businesses to transform ordinary income into dividends through the creation of a legal entity specifically defined by the IRS. An IC-DISC reduces your tax liability by converting a portion of your export income from being taxed as ordinary income at a rate of 39.6% into a qualified dividend which is taxed at a rate of 23.8%.
- A business which directly exports goods it manufactures (may include software, films, agricultural products)
- A business which provides architectural or engineering services conducted in the U.S. for a building/bridge outside the U.S. (e.g. building designed in U.S. and built in Canada)
- A business which manufactures goods included in a product that is exported. (e.g. tires on a tractor)
Want to know more about whether your business would benefit from the establishment of an IC-DISC? William Vaughan Company’s tax services group can guide you step-by-step through the process. Proper planning is critical to ensure the IC-DISC has been established appropriately and to guarantee maximum tax benefits. The benefits are available only for export sales made after the IC-DISC is established. The sooner you act, the greater your tax savings!
Research & Development (R&D) Tax Credit
The Research and Development (R&D) tax credit is one of the most lucrative and misunderstood tax incentives offered by federal and state governments. Each year, this credit yields billions of dollars to businesses engaged in developing or improving upon existing products and processes. However, many businesses have not taken advantage of this enticement as a result of historically complex qualifications.
The Research & Development (R&D) tax credit is for businesses of all sizes, not just major corporations with research labs. Many companies are surprised to discover they qualify. With the guidance of a knowledgeable team, your business can increase your cash flow, secure credit for the future and obtain a permanent tax savings through a qualified R&D tax credit study. William Vaughan Company’s client centric efforts have delivered substantial savings to our clients in the way of R&D tax credits. We work with you throughout the entire process to ensure peace of mind and savings are maximized. After all, research tax credits shouldn’t be more complex than the research itself!
- Manufacturing & Fabrication
- Software Development
- Aerospace & Defense
- Food Science
- Tool & Die Casting
- Chemical & Formula