If your company is involved in the following activities, you may be eligible for significant tax savings in the form of a Cost Segregation study:
Our Cost Segregation Study provides significant cash flow improvement and tax saving. We achieve that by a detailed isolation of depreciable acquisition expenses. Isolated expenses are assigned to significantly shorter depreciation lives. Most often, commercial real estate, is depreciated over 39 or 27.5 years for tax purposes depending on type of property. With our Cost Segregation Study, these expenditures can be moved to shorter depreciation lives (5, 7, or 15 year).
Our cost segregation study benefits owners and tenants of the following property types:
We follow a simple yet detailed process to make sure our clients get the best quality of service that they deserve.
Once the requested information is received from the client, it’s reviewed by our cost segregation engineer specialists. Next, the net present value of future depreciation savings is calculated and communicated to the client along with an engagement letter. The client will be fully aware of the benefits to be derived and our engagement pricing before a commitment is required.
We ask our clients to provide details on capitalized expenses incurred over the study period. We review the closing statements, the history of purchase price allocations, rent roll analysis, and other capitalized expenditures.
A detailed review of the blueprints or construction drawings is a significant part of the cost segregation study. Our team will analyze the following aspects of the construction expenses:
To achieve the best result for our clients, we need to assess all the information related to their expenditures. Therefore, we visit the location(s) where you incurred expenses to confirm our findings. By doing so, we are able to confirm which expenditures deserve shorter depreciation terms.
To support our study, we take pictures of the location(s) and prepare all the necessary documents to support our conclusions.
This phase includes the preparation and delivery of the Cost Segregation Study and its quantitative and qualitative components. The Study will serve as the client’s documentation supporting the depreciation claimed. This phase entails a full analysis of technical issues related to the segregated expenditures as well as full identification, documentation and quantification of the expenditures at issue.