Cost Segregation 101

The hidden gem in your tax tool kit

How does it work?

Typically, buildings must be depreciated evenly over either 27.5 or 39 years. The goal of a cost segregation study is to identify all direct and indirect building-related assets that qualify for shorter depreciable lives—5, 7, or 15 years—to reduce your current tax liability and free up operating capital for other uses. A cost segregation study can also identify costs that may qualify as repair expenses resulting in an immediate write-off.

How do I know if it’s right for me?

If you acquired, bought, built, renovated, or made land improvements on real property after 1988 you likely qualify. We generally recommend a cost segregation study when the tax savings you enjoy during the first year are at least double the cost of the study.

15+ years, 500+ studies, and high standards

Cost segregation tax savings can be a real boon. We base every cost segregation study on the most stringent standard: engineer findings. Few local firms provide studies based on this high standard of evidence.

Worldwide resources with BDO

Through our independent BDO alliance, we’ve worked closely with BDO’s Fixed Asset Services Group on hundreds of cost segregation studies for clients in a variety of industries. Our specialists and partners know the tax code, apply many years of cost segregation experience, and have a successful record of defending the studies before authorities.

No secrets here: We will give you a full written report, including detailed documentation of our cost allocations and all applicable tax support. We will also provide you with an upfront cost-benefit analysis of doing the study—at no cost to you!

Our 1:6 ratio means more 1:1

Our ratio of executive team shareholders to staff is 1:6—unusually low for a full-service regional firm. It means you get the direct, involved attention of our top talent from day one through the issuance of final reports. They proactively offer you strategy, feedback, and ideas all along the way.

Don't Take Our Word For It

“The staff at Perkins have been so very helpful and accommodating in helping us meet our financial and tax goals. We use them not only for the regular tax prep of our returns but also as part of our tax planning advisory committee that meets quarterly. They help us strategize and come up with new ideas so we can meet our tax objectives for the year.”

Rachel Pan

“Perkins & Co is thorough, diligent, and has taken the time to learn and understand the challenges of our business. Their communication and interaction are excellent. They spend time understanding the business and financials, not just cranking numbers or reports for billable time. They also kept the same team through the years which speaks to their ability to retain quality people and minimize any “retraining” or “re-orientation” time on the client that comes with introducing a new team each year.”


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