Providing Engineered Studies for Commercial
Buildings and Residential Rentals Nationwide
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Cost Segregation Studies Increase Cash Flow
and Maximize Tax Benefits.
and Maximize Tax Benefits.
Cost Segregation is a tax strategy based on more that 50 years of tax code. It allows
commercial and residential rental property owners to accelerate substantial depreciation
deductions and helps ensure they are getting the full benefit of bonus depreciation. A cost segregation study can increase cash flow by tens of thousands to hundreds of thousands of dollars a year.
While Cost Segregation provides the greatest benefit when a property is first built or acquired, owners can benefit even on properties built or acquired several years earlier. Some property owners take "catch up" depreciation. Others re-file previous years tax returns to get an immediate refund.
What are the key benefits of cost segregation and do I qualify?
What types of properties are good candidates?
What type of cost segregation study achieves the greatest tax benefits?
Do You Conduct a Site Inspection on every Cost Segregation Study?
Are Your Cost Segregation Studies IRS Compliant?
Why Hasn’t My CPA Told Me About the Engineering component of Cost Segregation?
Can You Work with My CPA?
When is the best time to perform a Cost Segregation Study?
Do You Perform a Complimentary Initial Review?
How Can I Get Started?
What are the Key Benefits of Cost Segregation and do I qualify?
The key benefits of cost segregation can be summarized as follows:
For maximum tax benefits, the IRS requires a specialized engineering firm to perform a cost segregation study utilizing the Detailed Engineering Approach. Most CPA’s use the straight line method (27.5 years for residential, 39 years for all others) and do not have the engineering resources to provide owners with the lucrative tax benefits available from cost segregation studies using the Detailed Engineering Approach. We work in tandem with your CPA to ensure our studies will provide the solution you expect.
Do You Conduct a Site Inspection and an Engineering Analysis on Every Cost Segregation Study?
Yes. Our Detailed Engineering Approach consists of the following:
On-site physical inspection of the property
Are Your Cost Segregation Studies IRS Compliant?
Yes, Cost Segregation Strategy Inc.’s Detailed Engineering Approach Cost Segregation Studies are in full compliance with the “Cost Segregation Audit Techniques Guide” issued by the IRS. Further, our process meets and exceeds the IRS’ 13 elements of a quality Cost Segregation Study. Complete IRS support is provided with every Cost Segregation study we perform.
Why hasn’t my CPA Told Me About the Engineering Component of Cost Segregation?
Most CPA firms do not have Engineering resources and, therefore, rely on the straight line accounting method which provides clients with only limited tax benefits in cost segregation. In order to realize the maximum benefits available under tax law, the IRS requires Engineers and others, to perform a cost segregation study using the Detailed Engineering Approach. Cost Segregation Strategy, Inc. exclusively uses the Detailed Engineering Approach in all of its cost segregation studies.
Can You Work with My CPA?
Yes, we welcome the opportunity to have a Cost Segregation Strategy, Inc. Engineer work with your CPA to perform a Detailed Engineering Approach Cost Segregation Study.
When is the Best Time to Perform a Cost Segregation Study?
The best time to perform a Cost Segregation Study is the year in which the building is purchased, constructed, or renovated. This allows an owner to immediately start realizing maximum tax savings and will accurately classify assets before the building starts depreciating. However, if it is already later than that, do not worry; the IRS allows you to "catch-up" any missed depreciation in the current year without you having to file an amended tax return.
Do You Perform a Complimentary Initial Review?
Yes, in order for you see the potential tax benefits available, all we need is the following information about your property to perform a Complimentary Initial Review:
Just provide us with the information listed above on our Contact Us page and we will send you a no obligation conservative estimate of your expected benefits and study fees.
While Cost Segregation provides the greatest benefit when a property is first built or acquired, owners can benefit even on properties built or acquired several years earlier. Some property owners take "catch up" depreciation. Others re-file previous years tax returns to get an immediate refund.
What are the key benefits of cost segregation and do I qualify?
What types of properties are good candidates?
What type of cost segregation study achieves the greatest tax benefits?
Do You Conduct a Site Inspection on every Cost Segregation Study?
Are Your Cost Segregation Studies IRS Compliant?
Why Hasn’t My CPA Told Me About the Engineering component of Cost Segregation?
Can You Work with My CPA?
When is the best time to perform a Cost Segregation Study?
Do You Perform a Complimentary Initial Review?
How Can I Get Started?
What are the Key Benefits of Cost Segregation and do I qualify?
The key benefits of cost segregation can be summarized as follows:
- Substantial Reduction in tax liabilities – often hundreds of thousands of dollars for larger properties
- Immediate increased cash flow through accelerated depreciation
- Enhance your real property’s financial returns
- Corrects misclassified assets and provides opportunity to claim missed "catch up depreciation" from prior years in the current year
- Renovations, remodeling and replacement will be less costly due to detailed breakdown of building components
- Real estate property taxes may be reduced
- Demolition and rehabilitation allows property owners to write off certain assets as opposed to capitalizing those assets
- Provides an independent, objective, third party report that will withstand IRS scrutiny.
- Own commercial property(s) with a building cost of $300,000 or higher or a residential rental property with a building cost of $150,000 or higher?
- Pay federal income taxes?
- Operate a For-Profit Entity?
- Have held or plan on holding on to the property for at least one (1) to three (3) more years?
- New buildings presently under construction
- Existing buildings undergoing renovation, remodeling, restoration or expansion
- Purchases of existing properties
- Office/facility leasehold improvements and "fit outs"
- Post-1986 real estate construction, building acquisitions or improvements where no cost segregation study was performed (even though the statute of limitations previously closed on the property construction/acquisition year)
- Any of the following types of property:
. Airport
. Amusement Park
. Apartment Complex
. Assisted Living Facility
. Auto Dealership
. Bank
. Car/Truck Wash
. Casino
. Cinema
. Duplex
. Eightplex
. Fitness Center
. Fourplex
. Funeral Home
. Golf Course
. Grocery Store
. Gas Station
. Hospital
. Hotel/Motel
. Industrial Facility
. Laboratory
. Marina
. Manufacturing Facility
. Medical Center
. Medical Facility
. Nursing Home
. Office Building
. Office Condo
. Processing Plant
. R&D Facility
. Resort
. Restaurant
. Retail Store
. Self-Storage
. Shopping Center
. Single Family Home
. Sports Facility
. Triplex
. Truck Stop
. Warehouse
For maximum tax benefits, the IRS requires a specialized engineering firm to perform a cost segregation study utilizing the Detailed Engineering Approach. Most CPA’s use the straight line method (27.5 years for residential, 39 years for all others) and do not have the engineering resources to provide owners with the lucrative tax benefits available from cost segregation studies using the Detailed Engineering Approach. We work in tandem with your CPA to ensure our studies will provide the solution you expect.
Do You Conduct a Site Inspection and an Engineering Analysis on Every Cost Segregation Study?
Yes. Our Detailed Engineering Approach consists of the following:
On-site physical inspection of the property
- Examination of available architectural/engineering drawings and specifications for potential asset reclassification
- Analysis of cost data, including contractor’s application for payments, change orders, owner-incurred costs and indirect disbursements
- Preparation of an itemized list of property units qualifying for shorter-life classification
- Appropriating direct labor, material components and indirect costs based on blueprints, engineering drawings and specifications
- Reconciling total costs per the engineering analysis to capitalized project costs
Are Your Cost Segregation Studies IRS Compliant?
Yes, Cost Segregation Strategy Inc.’s Detailed Engineering Approach Cost Segregation Studies are in full compliance with the “Cost Segregation Audit Techniques Guide” issued by the IRS. Further, our process meets and exceeds the IRS’ 13 elements of a quality Cost Segregation Study. Complete IRS support is provided with every Cost Segregation study we perform.
Why hasn’t my CPA Told Me About the Engineering Component of Cost Segregation?
Most CPA firms do not have Engineering resources and, therefore, rely on the straight line accounting method which provides clients with only limited tax benefits in cost segregation. In order to realize the maximum benefits available under tax law, the IRS requires Engineers and others, to perform a cost segregation study using the Detailed Engineering Approach. Cost Segregation Strategy, Inc. exclusively uses the Detailed Engineering Approach in all of its cost segregation studies.
Can You Work with My CPA?
Yes, we welcome the opportunity to have a Cost Segregation Strategy, Inc. Engineer work with your CPA to perform a Detailed Engineering Approach Cost Segregation Study.
When is the Best Time to Perform a Cost Segregation Study?
The best time to perform a Cost Segregation Study is the year in which the building is purchased, constructed, or renovated. This allows an owner to immediately start realizing maximum tax savings and will accurately classify assets before the building starts depreciating. However, if it is already later than that, do not worry; the IRS allows you to "catch-up" any missed depreciation in the current year without you having to file an amended tax return.
Do You Perform a Complimentary Initial Review?
Yes, in order for you see the potential tax benefits available, all we need is the following information about your property to perform a Complimentary Initial Review:
- Date of ownership / property transfer date
- Cost of construction or the purchase price not including the land
- Type/use of the building (i.e. hotel, warehouse, retail, light manufacturing, restaurant, office, residential, etc.)
- Size of the building (sf, number of stories, #units if residential)
- Current depreciation schedule (if available)
- Type, cost, and date of any capital improvements since acquisition
- Building address(es)
Just provide us with the information listed above on our Contact Us page and we will send you a no obligation conservative estimate of your expected benefits and study fees.