Cost Segregation
Individuals and companies that build, purchase, remodel or expand any kind of real estate can benefit financially from using cost segregation.
Cost Segregation
Proper cost segregation requires what our team has expertise in: accounting, appraisal, tax law, valuation, engineering, architecture, real estate, and construction cost estimating. Benefit from our established track record of completing several hundred studies annually and successfully defending our reports before taxing authorities.
Individuals and companies that build, purchase, remodel or expand any kind of real estate can benefit financially from using cost segregation.
Because personal property can get buried in the lump-sum costs of a building purchase or construction project and end up classified as real property, a cost segregation study can unearth those assets and recover their tax value. Further, it increases cash flow by deferring taxes and typically creates tax savings of 2 to 5 percent of the total basis of the property. And while the primary benefit is present value tax savings, permanent tax reductions often occur as well.
As part of the study, our cost segregation specialists look for other opportunities to capitalize on the tax benefits associated with construction, expansion and renovation.
We also will help you:
- Improve short-term cash flow
- Properly classify assets and maximize deductions
- Create detail for fixed asset records
- Capture tax savings from disposals
- Comply with repairs and maintenance regulations
- Create a sound record for audit defense
- Assist with property tax reporting and insurance records
- Integrate with renewable energy and other tax incentives
Article
Bonus depreciation rules, recovery periods for real property and expanded section 179 expensing
