SERVICES

Cost Segregation

Whether you bought or built your commercial or rental building, significant tax deductions may be overlooked. Cost segregation identifies eligible building components, accelerating depreciation deductions.

Up to 50% of the property cost can be affected and, typically saving 2.5 to 10% of the building’s cost.
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BENEFITS

Maximizing Deductions:
Cost Segregation Simplified

Ensure you're not missing out on hidden tax deductions. Maximize the value of your commercial or rental property by utilizing cost segregation today.
Free consultations & benefit estimates for all cost segregation studies.
Deliverables comply with IRS Audit Techniques Guide and ASCSP (American Institute of Cost Segregation Professionals) standards, ensuring ethical practices.
Free audit support and ensure expertise with Form 3115.
All our Cost Segregation studies are ASCSP-certified.
Cost Segregation services can be performed without historical construction documents, using cost estimation techniques and software commonly used by construction experts.

Frequently Asked Questions

What are the benefits of cost segregation?

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There are several benefits to using cost segregation. In addition to reducing taxable income in the short term, it can also increase cash flow and improve the overall return on investment for the building

Is cost segregation subject to review by the IRS?

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Yes, cost segregation is subject to review by the Internal Revenue Service, and it is important to carefully document and analyze the assets being reclassified. As a result, it is important to work with a tax professional or other qualified adviser when considering this strategy.

Can cost segregation be used for residential properties?

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Cost segregation is generally only used for commercial properties but it can be used for residential properties if they are owned as investments. It can not be used on residential properties that you live in as a full-time residence.

Is cost segregation only for new construction or acquisitions?

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No, cost segregation can also be used for existing buildings that have undergone significant renovations or improvements. However, the rules for reclassifying assets in these cases may be different than for new construction or acquisitions.

How often do you need a cost segregation study?

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A cost segregation study can be conducted once for every property a taxpayer constructs, purchases, or inherits. Yet, when substantial enhancements are made to the property following its activation, these improvements create openings for extra cost segregation studies and added depreciation deductions.

For instance, notable enhancements like building expansions or remodels offer opportunities for a fresh cost segregation examination.

In the scenario where a different taxpayer procures a property that underwent a prior cost segregation study, the IRS suggests initiating a new cost segregation study for the new owner. This is due to the distinct circumstances surrounding the property under its new ownership.

Compliance with Expert Guidance

With the Corporate Transparency Act on the horizon, now's the perfect opportunity to get ahead of the game. By addressing these changes early, we can avoid compliance headaches and uncover strategic advantages as regulations evolve. Get in touch today for a comprehensive review of your business structure and tax planning strategies.