Cost Segregation

 
Real estate owners are always looking to increase cash flow and their return on investment while lowering tax liabilities. One of the ways to obtain these goals is to conduct a cost segregation study. Cost segregation accelerates income tax deductions and depreciation by identifying shorter-lived assets typically embedded in a building’s construction or acquisition cost that are depreciated over 27.5 or 39 years. The effects of this reclassification result in substantial cash flow benefits and reduced tax liabilities. A successful cost segregation study requires an understanding of the complexities of the tax code and of the materials and methods of construction design.

In order to ensure that our cost segregation studies maximize benefit and withstand IRS scrutiny, we partner with outside experts in depreciation and construction to bring our clients a complete cost segregation solution. We facilitate a unique approach to cost segregation which employs civil, structural and architectural engineering knowledge to identify components that qualify for accelerated depreciation. All actual and estimated asset costs, along with their classifications, are then documented to withstand IRS scrutiny.

If you have acquired business properties through purchase, new construction, renovation, or leasehold improvements, you may benefit from a cost segregation study.