Cost Segregation

cost seg

Tax Benefits of Cost Segregation

Cost segregation studies and purchase price allocations identify and reclassify building components into the appropriate MACRS tax depreciation categories. We identify, using IRS and Tax Court decisions, those assets that qualify for accelerated depreciation through the use of shorter tax life depreciation schedules.
These benefits include:

  • Maximize annual depreciation
  • Reduce upfront income tax costs
  • Lower cost of capital
  • Improve cash flow
  • Improve shareholder value
  • Ability to write-off individual assets in future when removed

Cost Segregation Helps Owners That:

  • Purchased real property since 1987
  • Constructed a new facility since 1987
  • Installed leasehold improvements, renovated, expanded or restored an existing property
  • Paid federal income tax on these properties

We Can Take Care of the Details
In our Cost Segregation Study, we follow a structured methodology to analyze building plans, make onsite visits, document our findings and produce a detailed report consisting of

  • An overview of the property, purpose of the analysis, and the approaches used to perform the work
  • Our conclusions for the asset values, photographs of the property, and schedules describing the assets and summarizing the results
  • Summary Schedules – segregated among 5, 7, 15, and 39 year class life property
  • Detailed Schedules – arranged by class life and including asset description and allocated values

You Can Take the Benefits
You can gain $0.20 on every $1 of reclassified cost in after tax benefits!

Download Cost Segregation Tax Credit PDF