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Cost Segregation

We help you find your hidden wealth by combining the science of engineering with the art of interpreting tax law. By reclassifying costs buried in building assets, we can help you achieve substantial cash flow benefits in the form of immediate tax relief. Tax savings opportunities may be present in new and existing commercial or multi-family buildings, expansions and renovations, leasehold improvements and acquisitions placed in service since 1986.
 
By applying a proven methodology that incorporates more than 200 IRS court cases, rulings, and procedures, we can segregate and reclassify up to 50% of your building costs into personal property items that have much shorter depreciable lives than the 39-year life currently assigned to non-residential real property.
 
On average, for every $100,000 of 39-year property reclassified to 7-year property, the present value of the net cash flow associated with the acceleration of depreciation is approximately $20,000. Because the IRS has procedures in place for taxpayers that have claimed less than the allowable depreciation in prior years to claim deductions prospectively over a four-year period, your company may realize a cash flow windfall of tax benefits.
 
Our Cost Segregation Services bring a higher level of efficiency to cost segregation studies involving animal agriculture and food processing clients because of the firm’s deep level of experience in those industries. We can often classify and group equipment used in these industries more efficiently than the clients who are using the equipment. In addition to the immediate cash flow benefit, our Cost Segregation team can help you realize permanent savings, state and local tax reductions, tax credits or incentives, and detailed asset listing, allowing you to write off structural components as they are replaced.