Posts Tagged data center cost segregation

“What is Datapod?” Series-Part 3

Posted by on May 17, 2012  |  No Comments


We would like to follow up our latest blog “Accounting and Tax Benefits of Modular, Portable Data Center Infrastructure” with the benefits of cost segregation and the Datapod™ System.


Cost segregation is a strategic tax savings tool that allows companies and individuals, who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating deprecation deductions and deferring federal and state income taxes. Because the entire Datapod system (everything in the container and the container itself) is not considered to be a building, you would capitalize the total cost of the system (including the installation costs) and depreciate it over five years for tax purposes.

Attached is a benefit estimate that takes 100% of a $1,000,000 cost and moves it from 39 years to 5 years.  You can see that the Datapod system–compared to a million dollars of traditional new data center costs–will provide you with an improved cash flow of over $65,000 in year 1 and nearly $290,000 in years 1-5, cumulatively.  This analysis assumes a 35% federal income tax rate. Consideration of state income tax will enhance the results.  Note: This is provided purely for illustrative purposes; the fees and yields are merely examples and are not meant to be indications of actual fees or results.

Sample Benefit Estimate and Fee Quote (Click Here To Download Larger View)

Universal Networking Services works closely with a dedicated cost segregation team that includes engineers and tax experts that have performed thousands of tax projects resulting in hundreds of millions of dollars in benefits.   The initial assessment to determine qualification is free.  If you think you may qualify for cost segregation and want to increase your cash flow please feel free to contact us to learn more.

Don’s Corner: “Reduce Energy Costs In Your Data Center: Data Center Efficiency Assessments”

Posted by on August 31, 2011  |  No Comments


Don Melchert, Critical Facility Specialist

Data center efficiency is key to controlling energy costs and has become a topic of significant importance in the data center industry. Gartner research reports that 70 percent of CIOs say power and cooling issues are the single largest concern facing their data centers. Nearly half of a data center’s energy bill is from power and cooling infrastructure.

Our organization, Universal Networking Services, specializes in establishing energy efficiency benchmarks and provides cost-effective, energy efficient power, cooling and management solutions. A company that differentiates itself from its competitors by focusing on achieving maximum energy efficiency in the shortest time possible, is now offering their Critical Facility Energy Profile (CFEP) absolutely free. Using a non-invasive, risk free approach, our CFEP service inspects and analyzes a critical facility holistically, then identifies potential conflicts and makes recommendations on how to improve the overall reliability and energy efficiency of their IT support assets.  Upon completion, a CFEP Report Card is provided which summarizes each critical support component and its associated costs, based on deployment and facility architecture. A 20-30% increase in energy efficiency is a typical ROI for customers that have had a CFEP performed. Additonally, UNS offers cost segregation (tax savings) and leasing solutions to help the customer get the maximum ROI on new equipment.


Data Center Electrical Efficiency Profiles

Our Critical Facility Energy Profiles (CFEP) service provides an analysis of your current power and cooling infrastructure to determine the baseline efficiency of your wiring closet, server room or data center. Our critical facilities specialist will document the existing infrastructure, determine the efficiency and provide an accurate assessment of the factors limiting the highest achievable efficiency of the data center. The critical facility specialist will provide a comprehensive report that will make recommendations for changes to maximize efficiency. The following seven (7) key areas of your Network Critical Physical Infrastructure is evaluated:

  • Power
  • Cooling
  • Enclosures/Racks
  • Security
  • Fire Suppression
  • Management
  • Recycle/Re-use of Old Equipment

Our Critical Facility Energy Profiles (CFEP) service is available in three (3) distinct profiles:

Basic Premier Elite
Power Assessment Power Assessment Power Assessment
Cooling Assessment Cooling Assessment Cooling Assessment
Enclosures/Rack Enclosures/Rack Enclosures/Rack
Fire Suppression Fire Suppression Fire Suppression
Security Assessment Security Assessment Security Assessment
Management Assessment Management Assessment Management Assessment
Personnel Assessment Personnel Assessment Personnel Assessment
NCPI Report Card NCPI Report Card NCPI Report Card
Uptime Risk Assessments Uptime Risk Assessments
Rack/Row Efficiency Measurements Rack/Row Efficiency Measurements
Product Training (Where Applicable)
On-Site Finding Presentation
Thermal Imaging
CFD Analysis


Learn More:

To learn more about our Data Center Efficiency Assessment Services please visit us at www.criticalpowerandcooling.com.  Please feel free to contact Don Melchert with any questions at d.melchert@apcdistributors.com or call 918-760-8236.




Tax Benefits of Modular, Portable Data Center Physical Infrastructure (DCPI)

Posted by on April 19, 2011  |  No Comments

Tax and tax related asset management strategies create a significant impact on the total cost of ownership of DCPI.  Modular, scalable UPS systems, PDUs, and computer room air conditioners have not only created technological benefits, but provide entirely new DCPI tax and asset management opportunities with direct and measurable financial benefits.

WHAT IS COST SEGREGATION?

Cost Segregation is a strategic tax savings tool that allows companies and individuals, who have constructed, purchased, expanded, or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.

WHAT ARE THE BENEFITS OF A COST SEGREGATION STUDY?

  • Generates immediate increase in cash flow through accelerated depreciation deductions.
  • Reduces income taxes and can also reduce real estate property taxes.
  • Provides an easy opportunity to claim ‘catch up’ depreciation on previously misclassified assests.
  • Provides an independent third-party analysis that will withstand IRS review.

Cost segregation, is an exercise in recognizing and separately accounting for the costs of 5, 7, 10, 15, and 20 year property from the 30-39 year property classifications. The property in each of the classes from 5-20 years, once properly identified, are eligible for accelerated depreciation. This allows a business, institution or organization paying corporate income tax to further increase deductions during the early life of the equipment.

Organizations that own high technology assets can benefit the most from exercising cost segregation strategies, so long as each asset can pass the function and use test and the inherent permanency test. Modular, scaleable, factory built Data Center Physical Infrastructure (DCPI) performing the mission of a business routinely pass both tests with ease.

Tax and tax related asset management strategies create a significant impact on the total cost of ownership of DCPI. These savings are entirely separate to gains in energy efficiency. Successful implementation of cost segregation strategies involves a financial professional along with the IT professionals, and facility managers involved in the deployment of DCPI.

UNS, LLC works closely with a dedicated cost segregation team that includes engineers and tax experts that have performed thousands of tax projects resulting in hundreds of millions of dollars in benefits. The initial assessment to determine qualification is free. If you think you may qualify for this deduction and want to increase your cash flow please contact Universal Networking Services (UNS, LLC) for a free cost segregation benefit estimate and fee quote.  Contact, Waite Ave, Managing Partner at w.ave@apcdistributors.com or 281-825-9790.

Cost Segregation For Data Centers

Posted by on September 1, 2010  |  No Comments

Cost Segregation is a strategic tax savings tool that allows companies and individuals, who have constructed, purchased, expanded, or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.

WHAT ARE THE BENEFITS OF A COST SEGREGATION STUDY?
Generates immediate increase in cash flow through accelerated depreciation deductions.Reduces income taxes and can also reduce real estate property taxes.Provides an easy opportunity to claim ‘catch up’ depreciation on previously misclassified assets.Provides an independent third-party analysis that will withstand IRS review.

Cost segregation, is an exercise in recognizing and separately accounting for the costs of 5, 7, 10, 15, and 20 year property from the 30-39 year property classifications. The property in each of the classes from 5-20 years, once properly identified, are eligible for accelerated depreciation. This allows a business, institution or organization paying corporate income tax to further increase deductions during the early life of the equipment.

Organizations that own high technology assets can benefit the most from exercising cost segregation strategies, so long as each asset can pass the function and use test and the inherent permanency test. Modular, scaleable, factory built Data Center Physical Infrastructure (DCPI) performing the mission of a business routinely pass both tests with ease.

Tax and tax related asset management strategies create a significant impact on the total cost of ownership of DCPI. These savings are entirely separate to gains in energy efficiency. Successful implementation of cost segregation strategies involves a financial professional along with the IT professionals, and facility managers involved in the deployment of DCPI.

UNS, LLC works closely with a dedicated cost segregation team that includes engineers and tax experts that have performed thousands of tax projects resulting in hundreds of millions of dollars in benefits. The initial assessment to determine qualification is free.

To learn more please contact Waite Ave at w.ave@apcdistributors.com or 1-888-486-7725, ext. 201.