Do you currently have clients who own the building in which their business operates?  If so, this building is likely being depreciated over a 39-year period.  However, you may have the opportunity to offer your clients significant tax savings through an engineering-based cost segregation study offered by PFA Consulting. 

The IRS recently acquiesced in the landmark court case Hospital Court of America, et al. v. Commissioner, ruling that the tests developed for the now repealed Investment Tax Credit remain determinant in classifying assets as tangible personal property or structural components of buildings.  Rather than depreciating the total cost of the building over 39 years, an engineering based cost segregation study separates the cost of the building into tangible personal property (typically depreciated over 5 to 7 years), land improvements (typically depreciated over 15 years), and real property (typically depreciated over 39 years). 

Fortunately, it’s not too late to offer your clients the benefits of an engineering-based cost segregation study.  You don’t even need to amend your client’s past tax returns.  Instead, you claim all missed depreciation from prior years by filing form 3115 with your client's next tax return. This will result in an “automatic” IRS consent to a change in their accounting method for depreciation. 

 
An engineering based cost segregation study will help your clients who:

1. Own commercial property placed in service after May 12, 1993
2. Bought or built commercial property for over $500,000, including leasehold improvements
3. Are profitable and pay Federal income tax
4. Have no immediate plans to sell their building

PFA Consulting employs a team of engineers, commercial appraisers, and tax experts who specialize in producing engineering based cost segregation studies.  We will manage your client’s study from start to finish and minimize your time commitment. 

PFA Consulting also offers a referral fee through our alliance agreements with local accounting firms.  Many accountants tell us that our alliance agreement has helped to make their marketing efforts more successful, resulting in the acquisition of larger and more profitable clients. In addition, introducing a tax savings tool this powerful will further solidify your relationship with your current clients.