Cost Segregation

About The Service

Cost Segregation is the process of identifying personal property assets that are grouped with real property assets and separating out personal assets for tax reporting purposes. A cost segregation study identifies and reclassifies personal property assets to shorten the depreciation time for taxation purposes. 

Personal property assets may include a building’s non-structural elements, exterior land improvements, and indirect construction cost.

Who Qualifies

Real property eligible for cost segregation includes buildings that have been purchased, constructed, expanded, or remodeled over the last 10 years. A study is typically cost-effective for buildings that were purchased in excess of $1M or modified at a cost greater than $500,000. A cost segregation study is most efficient for new buildings (recent construction) but it can also uncover retroactive tax deductions for older buildings, which can generate significant short-term benefits due to “catch-up” depreciation. Building Types Studied Include:

  • Apartment Complexes
  • Nursing Homes
  • Automobile Dealerships
  • Office Buildings
  • Distribution Centers
  • Retail Chains/Franchises
  • Fast Food Restaurants
  • Shopping Malls
  • Food Processing Facilities
  • Self-Storage
  • Gas Stations
  • Sports Stadiums
  • Hotels/Motels
  • Amusement Parks
  • Manufacturing Plants
  • Supermarkets
  • Medical Centers
  • Casinos

COST SEGREGATION

Benefits

  • $1 for $1 reduction of federal income tax
  • Increased cash flow
  • Study performed by dedicated engineer as required by the IRS
  • Retroactive analyses allow “catch-up” tax savings in the current year
  • CPA Support – We work directly with your CPA to help you claim these credits.
  • FREE Audit Defense is included with all technical services – We stand by our work.

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