Cost Segregation Studies
A Cost Segregation Study is one of the most valuable tax strategies available to owners of income-producing and business-related real estate. Under United States tax laws and accounting rules, 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. When a property is purchased, not only does it include a building structure, but it also includes all of its interior and exterior components. On average, 20% to 40% of those components fall into tax categories that can be written off much quicker than the building structure. A Cost Segregation Study dissects the construction cost or purchase price of the property that would otherwise be depreciated over 27 ½ or 39 years. The primary goal of a Cost Segregation study is to identify all property-related costs that can be depreciated over 5, 7 and 15 years.
The benefits of a Cost Segregation Study include:
✓Lower current taxes as the tax burden is pushed off to later years
✓Opportunity to invest the tax savings now and make a profit before having to pay the taxes later
✓Increased cash flow
Any commercial building put into service in 1987 or later is a candidate for this type of study.
We utilize only true engineering-based methodologies to conduct the most accurate and thorough cost segregation studies available. We conduct all our studies in accordance with the IRS’s Cost Segregation Audit Techniques Guide.
Let us show you the benefits of a Cost Segregation Study on your property by providing you with a free analysis of the potential tax savings.