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If you've answered yes to any of these questions then your organization may benefit from a cost segregation study. A cost segregation study may improve your cash flow and bottom line. They have become an increasingly valuable, but not commonly understood, tax strategy that should be considered by virtually every taxpayer who owns, is constructing, renovating or acquiring real estate.
Cost segregation is a study that can help your business to: accelerate depreciation, increase current tax deductions, defer income tax and increase cash flow. It is an engineering-based approach to identify assets within a building that can be reclassified into a much shorter depreciation recovery period than the building itself.
The tax benefits of cost segregation can be applied to various types of real estate: apartments, assisted living/nursing homes, auto dealerships, office buildings, restaurants, manufacturing buildings, hotels, medical buildings, retail space, and others.
As part of each cost segregation study, through our association with an engineering firm, we help you to maximize your tax benefit by identifying, classifying and segregating the personal property components and land improvements of the building, resulting in depreciable lives of 5, 7 and 15 years using accelerated depreciation.
The proven process that combines accounting and engineering:
Cost segregation services require engineering expertise to perform them properly. That's why we have an association with an engineering firm.