Cost Segregation

A manufacturing company invested in a cost segregation study and construction contract review for a new $8,000,000 facility. We were able to uncover savings that totaled nearly $1,500,000 in federal income taxes and contractor overcharges.

For more information, please contact Alan Vaughn at 404-898-8233.

How Can You Save on Sales Taxes?

Another benefit you can achieve from a cost segregation study is lower sales taxes. About half the states give a sales tax exemption for tangible personal property used in manufacturing processes and R & D. But supporting the deduction can be very complicated.

What is your state's particular definition of tangible personal property? Does it differ from the federal definition? Special-purpose property, roads, and concrete loading docks, for example, could qualify as tangible personal property in the federal definition - but not the state's.

What in your state, is manufacturing? Does your business have a manufacturing process - or is it assembling or processing ( which may or may not qualify for sales tax exemption)? Does your state allow an exemption for storage? Can you document that the identified tangible personal property is used directly in manufacturing, as most states require?

We can answer those questions and help you save money.