Cost Segregation Studies

Cost Segregation Studies

If you own developed real estate, you may want to take advantage of this opportunity for substantial tax savings.

Cost segregation studies identify shorter-life assets within real estate such as certain electrical and mechanical systems, decorative features, specialty fixtures, equipment and land improvements. Using cost segregation, these types of assets, typically depreciated over 39 years, are segregated and reclassified to qualify for 5-, 7- or 15-year depreciable lives. Maximizing available depreciation deductions reduces current taxes and accelerates cash flow.

The accelerated depreciation can be applied now, going forward and going back all the way through 1987. The IRS allows owners of real estate to claim depreciation deductions that were unclaimed on prior tax returns. Assets can be reclassified without amending tax returns.

Just about every taxpayer who owns developed real estate can benefit from cost segregation.

  • Do you own depreciable real property acquired in 1987 or later?
  • Are you constructing or purchasing real property?
  • Are you expanding your existing facility?
  • Do you have extensive leasehold improvements?
  • Do you have acquisitions or investments in real estate properties?

If you answered yes to any of these questions, contact us for a free initial consultation to unlock your property's tax savings opportunities. We partner with several qualified providers for cost segregation studies, which have helped our clients save taxes and added thousands to their bottom lines.