Cost Segregation

This Is Why

We Should Work Together

A cost segregation study is a set of calculations created by an independent firm with extensive tax and construction knowledge. When an engineering-based study is performed, actual cost records and construction documents are reviewed, when available, and a site visit is completed.

A quality cost segregation study should include the 13 points outlined within U.S. tax code. Our methodical approach identifies individual components of your commercial property, which are included in your detailed cost segregation study.

Most buildings are depreciated over 27.5- or 39-years. A cost segregation study re-categorizes a portion of your building into 5-, 7- or 15-year class lives. When the usable lives of these items are accelerated, your income is reduced, thus, reducing your income taxes.

Within the first five years of building ownership, you could save up to $100,000 for every $1 million in building costs.

Reduce Your Taxable Income

By utilizing accelerated depreciation, your income is reduced, which immediately affects your federal income tax payment. Our cost segregation studies help you get the maximum tax deductions while staying compliant with the U.S. tax code.

Grow Your Business

What you do with the money is up to you. Many of our clients use their tax savings to reinvest in their business, purchase additional property, or pay off their principal building payment.

Free, no-risk cost-benefit

By obtaining a few details from you on your commercial property, we can prepare a free analysis that will show you the cost benefit of having a cost segregation study done. This will aid in determining whether you will benefit from a cost segregation study.

Engineered Study

We provide a detailed engineering review of the assets, including special purpose mechanical and electrical systems, decorative finishes, site improvements, and any process related to special purpose construction in accordance with IRS rulings to maximize your deductions.

Detailed Report

We provide a written report with the asset detail supporting the reclassifications and complete the necessary tax form for your CPA or file them for you if we are preparing your tax returns for the year the cost segregation study is performed.

Peace of Mind

We provide you with the peace of mind that your cost segregation study is being performed by professionals that have years of experience and know the IRS guidelines. In the event of an audit by a tax entity, we have full confidence our study will stand up to scrutiny and we stand behind you to support the position taken.

The ABC Firm is fantastic to work with and they truly provide superior CFO services and come highly recommended. They really have provided us with the financial expertise to guide our growing business to success.

Harry James