Do I need a Cost Segregation Study?
Yes! Most professionals recommend completing a cost segregation study immediately after the purchase, remodel, or construction of a property or within the first year thereafter for maximum tax benefits.
What is Cost Segregation? (Summary)
A Cost Segregation Study is an engineer-based study of all of the individual assets purchased in a real estate transaction. This allows the taxpayer to use an accelerated depreciation schedule resulting in higher tax deductions in the early years of the purchase of a property — keeping more dollars in the business. These assets are depreciated over 5, 7 or 15 years using an accelerated method rather than the standard 27.5- or 39-year depreciation used for most real estate.
Why has my accountant not performed a Cost Segregation Study already?
The IRS recognizes that a Study requires engineering expertise. While an accountant may have knowledge in taxation, an engineer is needed to interpret blueprints, assess construction methods, inspect the building, and estimate components. Additionally, since the same asset can qualify in one building and not in another, knowledge of numerous IRS rulings is needed to ensure assets are being depreciated correctly for a specific situation.
Benefits Include Improved Cash Flow...
Less money paid in taxes frees up capital for reinvestment in operations or growth. Companies that take advantage of cost segregation have a better ability to stay competitive, explore new markets and create jobs.
?Owners/tenants of various types of property can reap significant benefits from our Cost Segregation Study.
- Offices
- Medical facilities
- Retail
- Manufacturing
- Distribution facilities
- Restaurants
- Warehouses
- MMJ facilities
- Hotels
- Apartments
- Banks
- Grocery stores
- Golf Courses
- Many more…