A Cost Segregation Study is one of the most valuable tax strategies available to owners of income producing and business related real estate.

Under United States tax laws and accounting rules, cost segregation is the process of identifying personal property assets that are grouped with real property assets, and separating out personal assets for tax reporting purposes. When a property is purchased, not only does it include a building structure, but it also includes all of its interior and exterior components. On average, 20% to 40% of those components fall into tax categories that can be written off much quicker than the building structure. A Cost Segregation Study dissects the construction cost or purchase price of the property that would otherwise be depreciated over 27 ½ or 39 years. The primary goal of a Cost Segregation study is to identify all property-related costs that can be depreciated over 5, 7 and 15 years.

Benefits of a Cost Segregation Study:

✓Lower current taxes as the tax burden is pushed off to later years

✓Use the savings to invest in new property or other investments

✓Increased current cash flow

Any commercial building put into service in 1987 or later is eligible.  A study can be done even if the building has been owned for many years (Catch-Up Depreciation).

Let us show you the benefits of a Cost Segregation Study on your property by providing you with a FREE analysis of the potential tax savings.