Tax Stategies and Savings Opportunities

Who Are We

Green Summit Engineering

Green Summit Engineering is a Multi-Disciplinary Professional Engineering Firm that specializes in innovative tax strategies and savings opportunities for CPA’s, government agencies and their contractors in addition to commercial customers. The company was founded in 2014 by Jonathan D. Stowers and Michael J. Hayman on the premise that customer satisfaction and quality of service is placed before all else. The company is headquartered in Central Florida on Florida’s Space Coast and have satellite offices throughout the country.

Guided By True North

Passion & Commitment – We have a passion for results aligned with our client’s success, and a commitment to the highest level of accuracy, professionalism and ethical standards in everything we do.

Client Value Creation – Working with clients to consistently deliver value and build long-term relationships.

Honesty & Openness – Being ethically unyielding and honest and inspiring trust by saying what we mean, matching our behavior to our words and taking responsibility for our actions.

Best People – Attracting, developing and retaining the best talent for our business, challenging our people, demonstrating a “can-do” attitude and fostering a collaborative and supportive environment.

Stewardship – Fulfilling our obligation of building a better, stronger, more durable company for future generations.

Passion for Results

When working with Green Summit Engineering, clients gain the advantage of working with highly skilled, responsive engineers and management staff whose primary focus is to deliver quantifiable results to our clients. Our company systems, internal peer-review process and project management expertise ensure that our work is highly detailed, accurate, and on-time to the customer.

Powered by Knowledge

Our work is founded on a rigorous understanding of every client’s dynamics. For this reason, we invest firm resources in knowledge development, learning and capability building. We study markets, trends and emerging best practices, in every industry sector, nationwide. Our investment in knowledge also helps advance the practice of management. We offer courses for licensed CPA’s through the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors.

Services

Engineering-Based Cost Segration

Cost Segregation is a highly beneficial and widely accepted tax planning tool used by commercial real estate owners to accelerate depreciation deductions, defer tax and improve cash flow.

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Apartments

Every apartment from garden-style apartments to high-rise apartments can benefit from cost segregation with an accelerated depreciation of generally 15% - 40%.

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Automobile Dealerships

Automobile dealerships have a lot when it comes to cost segregation. We can generally accelerate 30% - 55% of the depreciable basis into shorter lives, due to the large parking lots and other site work; as well as the specialty equipment within the service bays and all related electrical and plumbing components.

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Hospitals and MOB

Everything from large, multi-building complexes to small offices (dental, vision, veterinary) can benefit from cost segregation. Generally medical office buildings contain specialized plumbing systems (medical gas, vacuum systems, exam/operating room sinks), as well as specialty electrical (X-Ray, MRI and other equipment), copper or lead lined walls for X-Ray/MRI protection, cabinetry in many areas as well as site improvements. Generally, we can accelerate 25% - 40% of the depreciable basis into shorter class lives.

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Hotels

Hotels have an abundance of fixtures, furniture, carpeting and decorative components including lighting and millwork, as well as site improvements including the parking lot and sometimes swimming pools and spas. Hotels generally have 3-5 different room types which are identical, and for that reason, this type of study is less costly to complete due to the reduced time involvements. We can generally accelerate 25% - 40% of the depreciable basis into shorter class lives.

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Offices

All office buildings have a great potential for high return on investment from cost segregation, due to the abundance of electrical components, communication systems, decorative lighting and site improvements. We can generally accelerate 15% - 35% of the depreciable basis into shorter depreciable lives.

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Warehouses

Most of the time, warehouses are large open spaces without much of anything except for lighting and the building shell; however, quite often still includes dock equipment and some specialized wiring as well as site improvements.

Section 179D Energy Efficient Commercial Building Deduction

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The §179D tax deduction was originally passed by Congress as part of the Energy Policy Act of 2005 in direct response to broader energy usage and independence concerns. According to data released by the U.S. Department of Energy, buildings are responsible for 73 percent of all electricity consumption in the U.S., with about half of that coming from commercial buildings.

In an effort to curb this trend and encourage broader energy efficiency, §179D allows qualifying building owners, and government building designers to receive up to $1.80 per square foot tax deduction for their energy-efficient buildings placed into service during all open tax years. Any accrued tax deductions from these buildings can be carried-back two tax years or can be carried-forward for up to 20 years.

For a building to qualify, the energy-based improvements must be made to the HVAC, interior lighting systems, or to the building’s envelope. Additionally, the enhancements to these systems must surpass ASHRAE 90.1 - 2001 standards for buildings placed into service before 2016—and ASHRAE 90.1 - 2007 standards thereafter. An independent, 3 rd party licensed engineer must review the building to confirm the energy savings and tax deduction.

There are multiple methods to securing §179D and different levels of deductions depending on the energy efficiency levels that your project meets. Energy consumption cost reductions of as little as 10%, in some cases, can result in very substantial tax savings.

§179D Extension: Currently, the deduction is valid for energy efficient property placed in service through December 31 st , 2017. Our team has been keeping an eye on the latest updates with this deduction. We will post updates here to keep you informed.

For more information, contact us by phone or email.

Disposition Studies

Recent changes to tax regulations have allowed taxpayers to dispose of individual building components when they are retired, demolished or abandoned; where previously the IRS viewed a building as a single Unit of Property (UoP) and were required to continue depreciating components until they had been fully depreciated. The new regulations (IRS Code 1.168(i)-8(d)(2)) allows a property owner to dispose or “write-off” certain components provided that a detailed report has properly broken out individualized units of property within the larger unit. However, a taxpayer may have these benefits lost if it fails to consider them and perform the disposition in a timely manner.

The IRS now requires property owners to depreciate 9 separate units of property within their real property:

  1. Building Structure
  2. HVAC Systems
  3. Plumbing System
  4. Electrical System
  5. Escalators
  6. Elevators
  7. Fire Suppression and Alarm
  8. Security
  9. Gas Distribution
  10. *Any other system identified in future published guidance.

See the Journal of Accountancy article on "Electing the benefits of partial dispositions""

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Contact Us

Corporate Headquarters


Based In

  • HQ - Cocoa, Florida
  • Tulsa, Oklahoma
  • Portland, Oregon
  • Omaha, Nebraska

Partnering and Teaming Opportunities

We have built cohesive Strategic Alliance arrangements with CPA firms, real estate professionals and construction firms, because we understand that the power of the team creates a win-win for all stakeholders. Partners benefit by offering additional services while earning revenue, without increasing overhead. We work with many companies differently. Call or email us today to discuss what structure might work with your firm.

Green Summit Engineering