Click  "The Process"
for a Cost Seg Study
 
Click  Example of
Components Accelerated
 
Click  to see
Cost Seg Case Studies
 
 
 
 
What is Cost Segregation?
 
On Books Since 1997
 
Cost Segregation is a financial strategy that large Commercial Property investors (think Trump) and Major Corporations have been using for years.
 
Now the small, medium and large firm
can utilize these same strategies.
 
We believe that the small to medium/large size commercial property owners have been Underserved and basically Unaware of what is "rightfully" theirs in the area of Cost Segregation.
 
WHAT IS COST SEGREGATION? it is an IRS defined and sanctioned approach that allows Commercial Property owners to REDUCE FEDERAL TAXES by accelerating the depreciation on their properties by separating real (essential) and personal (non-essential) components of a building and reclassifying the depreciation on the personal items from 39 years to 5, 7, or 15 years.
 
Accelerated depreciation -->
Reduced Taxable Income -->
Increased Cash Flow (immediately)
 
DO YOU QUALIFY?
  • Properties acquired or renovated after 1987
  • Commercial Property cost of about $500k higher (minus land).
  • Existing Property, New Construction, Recent Acquisitions, and Renovations/Improvements
  • Leaseholders making tenant improvements of $350k or higher
DUE DILIGENCE: have your CPA contact us for details
 
What the IRS is saying...
Cost Segregation Audit Techniques Guide
Link: IRS Audit Techniques Guide
Cost segregation studies are conducted for a variety of reasons (e.g., income tax, financial accounting, insurance purposes, property tax). For income tax purposes, a cost segregation study involves the allocation (or reallocation) of the total cost (or value) of property into the appropriate property classes in order to compute depreciation deductions.
Click to see details on the IRS website
 
 
An accurate cost segregation study may not be based on non-contemporaneous records, reconstructed data, or taxpayer's estimates or assumptions that have no supporting records
 
Click to see details on the IRS website
 
 
A "quality" cost segregation study is a study that is both accurate and well-documented with regard to the three points below. Quality studies greatly expedite the Service’s review, thereby minimizing audit burden on all parties. A quality study contains a number of characteristics, which are set forth below.
  • 1. classify assets into property classes (e.g., land, land improvements, building, equipment, furniture and fixtures);
  • 2. explain the rationale (including legal citations) for classifying assets as either § 1245 or § 1250 property; and,
  • 3. substantiate the cost basis of each asset and reconcile total allocated costs to total actual costs.
 
Click to see details on the IRS website