Cost Segregation Studies

An often over-looked tax savings opportunity is accelerated depreciation of costs associated with the construction, renovation, or purchase of a building or leasehold improvements. If you have engaged in any of those activities within the past few years, a cost segregation study can help you improve your profitability by maximizing cash flow.

A cost segregation study (“cost seg”) is a detailed analysis of a company’s assets where they have constructed, bought, expanded or remodeled their real estate. Simply stated, the goal of a cost seg is to identify assets where depreciation can be accelerated. By identifying assets that qualify for shorter depreciable lives, you are able to accelerate tax depreciation and lower your current income tax allowing the company to enjoy improved cash flows by reducing the current tax liability.

If done properly, a cost segregation study will identify and reclassify property currently being depreciated over the typical 39 year life to shorter periods ranging from five to 15 years.

Our cost segregation consultants can help ensure that you maximize your investment. Please contact us to learn how we can help lower your current tax liability and improve your cash flow.

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