What is a Cost Segregation Study?
You may be asking the obvious questions right now. What is a Cost Segregation Study? And how can it benefit my business? The short answer? It can accelerate depreciation. And the reason we accelerate depreciation is simple: to increase your cash flow and reduce your taxes.
Our Cost Segregation Studies are based on a sound cost engineering analysis of your property combined with a focused tax analysis that will allow you to accelerate depreciation from the normal 39-year schedule. With this tool, you can virtually write off all the property that the study identifies to be a 5-, 7- and 15-year property.
To accomplish this, you need a thorough engineering analysis that meets all IRS standards based on real cost estimating knowledge and skills. Using our experienced team who has a thorough understanding of construction methods, materials, and costs can mean the difference between getting some of the benefits versus all of the benefits. This added benefit will more than off-set the fees for the project.
With bonus depreciation at 100%, for every $1M in building cost the average building owner can receive cash flow increases of $60K to $150K in the first year.
ROI’s for cost segregation studies have jumped significantly with the latest tax changes and it is common to see them greater than 30 to 1.
The same benefits for new construction are now extended to acquisitions creating never before seen benefits.