Cost Segregation

Cost Segregation is a proven tax planning strategy that allows investment property owners to accelerate depreciation deductions and defer tax payments.  A taxpayer can use Cost Segregation when constructing a building or when buying an existing one.  It can even be used if a structure was constructed or acquired several years earlier. 

For maximum tax benefits, the IRS requires a specialized engineering firm to perform a Cost Segregation Study utilizing the Detailed Engineering Approach.  Until the last few years, only Fortune 500 caliber companies could afford the benefits of engineering-based Cost Segregation through the costly services of their Big 4 advisors. We work with outside engineering specialists and can make available to you reasonable, cost-effective, fees to our clients. The firms we work with perform these studies throughout the country.

The key benefits of cost segregation are as follows:
 
Substantial Reduction in tax liabilities sometimes hundreds of thousands of dollars!

Immediate increased cash flow through accelerated depreciation

Corrects misclassified assets and provides opportunity to claim missed "catch up depreciation" from prior years in the current year

No need to amend prior tax returns to benefit from the deduction of the "catchup" depreciation

IRS accepts cost segregation