Cost Segregation
Boost Your Bottom-Line
Cost segregation studies can lower your current-year tax liability and free up more capital.
Making an investment in your organization by purchasing, constructing or upgrading property, can be a valuable tax strategy. A cost segregation study separates real property into various depreciable categories, and allows taxpayers to depreciate property over much shorter periods of time than the typical 39-year (or 27.5-year) period. By taking deductions sooner, you lower your current-year tax liability and free up more capital.
The Benefits of a Cost Segregation Study Include
An average return on investment of 54:1
Substantial accelerated tax deductions
Increased cash flow
Special depreciation allowances (i.e., Section 179 or bonus depreciation)
Our work is performed in accordance with current tax authority, including the Internal Revenue Code, court decisions, revenue procedures, revenue rulings and Treasury regulations. Our cost segregation specialists apply the standards in the “Cost Segregation Audit Techniques Guide” used by the IRS. Our Certified Cost Segregation Specialists have the highest level of accreditation in the industry, and we’re one of only 16 firms in the country to employ such experts.
Who should consider a cost segregation study?
A taxpayer could reduce taxes and greatly increase cash flow through a study if:
The company is planning to or has recently constructed or purchased a building
The company recently renovated an existing building it owns or leases
The construction/purchase/renovation price was at least $300,000
Type of Properties That Qualify
Office buildings
Retail centers
Banks
Apartment buildings
Manufacturing facilities (heavy or light)
Restaurants
Hotels/motels
Grocery stores
Auto dealerships
Theaters
Golf courses
Research and development centers
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