Cost Segregation Study

The amount of savings realized by a cost segregation study will vary depending on your specific expenditures, business operations, and other financial factors. However, most facilities usually derive benefits such as:

Increased cash flow (resulting in increased cash available for new projects) through accelerated federal tax depreciation of construction-related costs

Substantially reduced corporate and possible individual income taxes

Net present value savings on federal tax depreciation

Potential reduction of state and local real estate and personal property taxes

Our independent analysis, which we will provide and which can be used in the event of IRS scrutiny.

Increase corporate net income (after tax) by reducing the corporation’s effective tax rate

Help investors maximize the tax credits they can claim

Allow a corporation or investor to claim “catch-up” depreciation on assets that have been previously misclassified as real property

Help investors and corporations manage their investments in capitalized assets

Reclassifying a building or leasehold improvement from the traditional 39-year depreciation period to a five-year classification results in a net present value benefit of 21 cents on the dollar. A switch to a seven or fifteen-year classification would represent a 19 cents and 11 cents net present value benefit, respectively

A cost segregation study is a review of all costs associated with the acquisition or construction of a building. The purpose of this study is to classify these costs as either real or personal property, with the personal property additions being depreciated on an accelerated basis. Properties with the best savings potential include:

Apartment Complexes Auto and Truck Dealerships Distribution and Warehouse Centers Fast Food Restaurants Financial Institutions Flex Properties Food Processing Facilities Golf Courses Government Leased Hotel/Convention Centers Low Rise Office Buildings Manufacturing Plants Marinas Medical/Surgical Centers Office Parks Prime High Rise with parking Structures Retail Chains Self-Storage Units Shopping Malls Supermarkets

It is critical that professionals with the requisite knowledge of the tax laws and IRS guidelines conduct your Cost Segregation Study. We have the expertise in construction and project design from both an engineering and tax perspective to perform a Cost Segregation Study on any commercial or residential property. We carefully follow strict IRS standards to uncover hidden tax savings for businesses.

For a complimentary Cost Segregation Study analysis of your property, click here.