Cost Segregation of Commercial Property

Cost Segregation Studies are one of the most overlooked programs for businesses nationwide and yet the most powerful benefit to commercial property owners.

This tax planning strategy identifies and maximizes a client’s tax benefits by accelerating depreciation deductions and deferring tax payments on commercial property. We provide a no-risk upfront assessment to determine if clients qualify. Our team of tax professionals, structural-design experts and engineers identify and re-classify commercial building component expenses.

Engineering based cost segregation studies permit commercial real estate owners to reclassify real property for depreciation purposes and reclassify it as more rapidly depreciating personal property. This reclassification results in significant cash flow benefits in both present and future years through considerably shorter depreciable tax life and accelerated depreciation methods. Note, these studies are not limited to new buildings or new renovations. Over 75% of our projects are on older properties using the “catch up” method which can produce significant results.

Although some building owners and CPAs have heard of Cost Segregation, this program is an engineering study. Countless building owners are missing out on this powerful tax savings strategy.

To facilitate this work we do an initial consultation and develop a feasibility report to determine the cash flow and net present value (NPV) benefit potential. Our professionals evaluate your current tax status and your future business plans along with your CPA to determine if a full study would benefit your company.

The result is an instant tax benefit to the client to offset any taxes they owe; or in some cases, provide much needed cash flow to the business.

“Cost Segregation Studies are a lucrative tax strategy that should be considered in almost every real estate purchase.” -US Treasury Department

An IRS approved strategy allowing property owners to reclassify specific assets that currently receive 39 or 27.5 year straight-line depreciation into shorter depreciable lives (5, 7, or 15 year).

Generally, items receiving shorter depreciation are those affixed to the building but not necessarily related to the actual operation and maintenance of the building.

The goal of a proper Cost Segregation Study is to breakdown all assets of a structure and properly allocate each of them to the appropriate depreciable life category. This can only be accurately completed by a professional with in-depth knowledge and experience in the building and/or construction industry.

What is Cost Segragation

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Countless building owners are missing out on this powerful tax savings strategy