Cost Segregation

Accelerating Tax Depreciation Deductions

Have you built a new facility? Expanded an existing one? You invested a lot of money into this project. How soon can you get some of that back? Typical building depreciation is spread out anywhere between 27 and 39 years. That’s a long time when those savings are more valuable to you today. Cost segregation lets you reclassify components of a building for accelerated tax depreciation, putting savings into your pocket over the next five to 15 years. Use these tax savings to maximize your cash flow or to fund new business ventures.

If you have purchased, constructed or renovated a building in the last 15 years, or are planning a future expansion, with costs of $500,000 or more, then you may benefit from a cost segregation study. To identify the most opportunities for savings, a cost segregation study should be performed by experienced technical advisors familiar with the nuances of tax laws and rulings and the depreciable lives of various business assets.

We’ll work closely with your general contractor and subcontractors throughout construction or during assessment and improvement of a property to be acquired. Careful planning, physical inspections and in-depth analysis of expenditures will lead to thorough documentation—a solid asset record—that is more likely to withstand IRS inspection.

When conducting a cost segregation study on past projects, we’ll walk you through the steps you need to take to file necessary documentation with the IRS.

Cost Segregation Experience: Our tax experts work closely with contractors to analyze blueprints, project specifications, payment records, purchase orders, change orders, field work orders, indirect fees, invoices and other documents. We approach each cost segregation study differently. A one-size-fits-all approach will not provide the greatest savings benefit and will risk scrutiny by the IRS.

Contact us for help achieving the maximum tax benefit allowable by the IRS.