The hidden gem in your tax toolkit.
What if you could significantly increase cash flow by accelerating the deduction of depreciating building-related assets? It’s no tax accounting fantasy; it’s what a cost segregation study may achieve for you if you are:
- Constructing a new building*
- Expanding an existing one
- Making leasehold improvements
- Purchasing property*
- Remodeling an old facility
* Includes prior year construction and acquisitions.
How it works
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. Our general target for recommending a cost segregation study is that the tax savings you enjoy during the first year is at least double the cost of the study. Let’s get the bang for your buck.
15+ years, 500+ studies, and high standards
We’ve been delighting clients with cost segregation findings for over 15 years. And 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.
Through our independent BDO alliance, we’ve worked closely with BDO’s Fixed Asset Services Group on more than 500 cost segregation studies for clients in a variety of industries. Our specialists and partners know the tax code, apply a combined 100+ 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!