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an engineering-based
study 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.
By
investing in
professionally prepared
cost segregation from
The Cost Segregation
Group you will have the
assurance that you have
maximized your
depreciation benefits
and have fully
documented support for
your depreciation claims
should you be audited by
the IRS. The Cost
Segregation Group is
there to assist you in
the event of an audit.
In cost
segregation study the
Cost Segregation Group
researches many
aspects. We physically
inspect the property to
identify, quantify, and
document property
components qualifying
for accelerated
depreciation. We also
examine architectural/
engineering drawings and
specifications for
potential asset
reclassification;
Analyze cost data,
including the
contractor’s application
of payments, change
orders, owner incurred
cost, and indirect
disbursements; Prepare
an itemized list of
property units
qualifying for
shorter-life
classification based on
relevant income tax
authorities; Apportion
direct labor, material
components, and indirect
costs based on
engineering drawings and
specifications;
Reconcile total costs
per the engineering
analysis to capitalized
project costs.
There are many benefits
to a cost segregation
study done by the Cost
Segregation Group.
Clients routinely
receive present value
cash flow saving at 10
to 20 times their
investment for the
study. Other benefits
of cost segregation
study are substantial
reduction of corporate
and possible individual
income taxes; helping
investors and
corporations manage
their investments in
capitalized assets;
increased cash flow
through accelerated
federal tax depreciation
or construction-related
costs; NPV savings on
federal tax
depreciation; potential
reduction of state and
local real estate and
personal property taxes;
maximized tax credits;
opportunity to claim
“catch-up” depreciation
on misclassified assets;
potential ability to
better manage
capitalized assets; Cost
Segregation Group’s
independent analysis,
which we will provide
and which can be used in
the event of IRS
scrutiny; reduce
corporate and individual
income taxes; reduce
real estate taxes by
shifting value from real
property to personal
property; reduce
personal property taxes
by accelerating the
write-down of personal
property; increase
corporate net income
(after tax); help
provide corporations and
investors with increased
cash flow; help
investors maximize the
tax credits they can
claim; provide investors
with additional cash to
reinvest in new
projects; allow a
corporation or investor
to claim “catch-up”
depreciation on assets
that have been
previously misclassified
as real property. A
cost segregation study
truly maximizes the
value of your real
estate assets.
From the
time the Cost
Segregation Group has
received all the needed
documentation, it takes
approximately 60 days to
complete the cost
segregation study. It
is critical that
professionals with the
requisite knowledge of
the tax laws and IRS
guidelines conduct your
CSS. Our on-staff team
of accountants and
engineers have expertise
in construction and
project design from both
and engineering and tax
perspective to perform a
CSS on any commercial or
residential property.
To learn
more visit:
www.costsegregationgroup.com
or
contact the Cost
Segregation Group:
555 Main
Street, Suite 1500 /
Norfolk, Virginia 23510
/ (757) 533-4156 |
