COST SEGREGATION STUDIES - 263(A) UNICAP - 179D STUDIES - R&D CREDITS

OnPoint Fast Tax Strategy

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Intro Cost Segregation 263(a) UNICAP 179D Deduction R&D Credits

OnPoint Fast: The Specialized Tax Benefits for Property Owners and Businesses

OnPoint coordinates these projects for our clients from start to finish, working with a network of specialist providers—including CSSI® (Cost Segregation Services, Inc.) and Specialty Tax LLC—who bring the deep expertise in IRS regulations and applicable law that each strategy requires. From real estate investors and developers to businesses investing in innovation, we help clients identify opportunities and coordinate the work needed to capture tax benefits through proven federal incentives.

The programs we coordinate include engineering-based cost segregation studies (via CSSI®), 263(a) UNICAP soft cost analysis (via Specialty Tax LLC), Section 179D energy deductions (via CSSI®), and R&D tax credits—each offering substantial tax benefits when handled by providers with the right specialized knowledge and skills. Every strategy requires detailed knowledge of the specific IRS guidelines, regulations, and eligibility rules that govern it; our specialist suppliers bring that expertise, while OnPoint coordinates the project end to end—ensuring full compliance and maximum financial benefit for the client.

The property-related incentives apply not only to newly constructed properties, but also to those that are recently purchased, already owned, renovated, or expanded. R&D tax credits, meanwhile, apply to qualifying business activity regardless of property ownership. OnPoint helps clients evaluate these opportunities and connects them with trusted experts to conduct audit-ready studies that unlock accelerated depreciation, energy-efficiency deductions, and innovation-based tax credits.

For a no fee estimate of cost segregation benefits, click here

Cost Segregation Studies

Cost segregation is a powerful strategy that reclassifies building components from long-term (39- or 27.5-year) depreciation into shorter 5-, 7-, or 15-year categories. This accelerates depreciation, improves cash flow, and lowers near-term tax liability. CSSI® provides fully engineered studies that identify eligible assets such as interior finishes, electrical, mechanical, and exterior improvements—delivering detailed documentation that withstands IRS scrutiny.

NEW: The “One Big Beautiful Bill Act” reinstates 100% bonus depreciation for qualifying property placed in service after January 19, 2025. Studies that classify short-life assets now allow full first-year expensing again—creating exceptional near-term tax benefits.

▶ More Information about Cost Segregation

Cost segregation studies accelerate depreciation deductions by reclassifying personal property and land improvements into 5-, 7-, or 15-year recovery periods.

Carpet, cabinetry, lighting, millwork, and accent walls
Specialized electrical/plumbing systems
Parking, landscaping, fencing, paving

Under the 2025 legislation, these assets now qualify for 100% bonus depreciation if placed in service after January 19, 2025—creating unmatched first-year deductions.

263(a) UNICAP — Small Business Soft Cost Exemption

The TCJA small business exemption (§263A(i)) allows qualifying entities under $30M in gross receipts to expense—rather than capitalize—certain soft costs on self-constructed real estate: construction interest, permits, engineering, design, and contractor soft costs. These costs would otherwise be locked into depreciable basis and recovered over 39 years. OnPoint coordinates with Specialty Tax LLC, who identify and document this opportunity for any project placed in service after December 31, 2017, with a 481(a) catch-up that brings prior years forward without amending returns.

???? Real results: a 2021 apartment building generated $614,983 in current-year deductions plus a $572,106 catch-up adjustment. A 2022 project yielded $1,056,778 current-year plus $841,165 catch-up. Most clients who qualify have never been offered this analysis.

▶ More Information about 263(a) UNICAP

UNICAP (uniform capitalization) rules under §263A normally require certain indirect costs to be capitalized into the basis of self-constructed property and recovered over decades. The small business exemption removes that requirement for qualifying soft costs, including:

Construction period interest
Permitting, engineering, and design fees
Contractor overhead and other indirect soft costs

Implemented through an automatic accounting method change (Form 3115)—no amended returns required. Pairs naturally with a cost segregation study as part of a comprehensive property tax strategy.

179D Energy-Efficient Commercial Building Deduction

The 179D deduction now provides up to $5.00 per square foot for qualifying energy-efficient upgrades to commercial buildings. CSSI® evaluates HVAC, lighting, and envelope systems to certify compliance with updated ASHRAE 90.1 standards and 2025 prevailing wage rules—allowing owners and designers to claim significant one-time deductions.

⚡ Eligible systems must meet or exceed 25% energy savings and be verified by licensed engineers using DOE-approved modeling software.

▶ More Information about 179D

High-efficiency HVAC systems
LED and motion-sensor lighting
Improved insulation, windows, and thermal barriers

Deduction applies to both private and government buildings and is assignable to designers. Retroactive claims are available for improvements installed in the past 3 tax years.

R&D Tax Credits

The federal R&D tax credit rewards businesses for investing in innovation—covering wages, materials, software, and subcontractor costs tied to qualified technical activities. As of 2025, IRS audits require enhanced documentation of intent, uncertainty, and process of experimentation.

✅ Startups can claim up to $500,000/year against payroll taxes. Unused credits carry forward for 20 years.

▶ More Information about R&D Tax Credits

Developing or improving products, processes, or software
Prototyping, modeling, and automation
Technical uncertainty with a defined process of experimentation

CSSI® delivers audit-ready R&D studies with time tracking, technical narratives, and allocation of qualifying expenses. Full documentation is critical under current IRS guidance.

▶ View State R&D Tax Credit Guide

Important Notice OnPoint Fast LLC is an independent sales and consulting organization — not the provider of the specialist services described herein. Each service is delivered by an independent specialist firm responsible for its own work, outcomes, and client relationships. Results shown are illustrative; actual results will vary based on each client's specific facts and circumstances. No outcome is guaranteed. All strategies should be reviewed by the client's qualified tax and legal advisors before implementation. OnPoint Fast LLC makes no representation as to the tax compliance, legal sufficiency, or suitability of any program for any particular client.