Cost Segregation Studies

WHAT IS COST SEGREGATION?

Cost Segregation is a lucrative tax strategy approved by the IRS in the late 60’s to reclassify specific real property assets that usually receive a depreciation life of 39 years (commercial real property) or 27.5 (commercial residential) into “tangible personal property” that is treated as five (5) year property or land improvements which are treated as fifteen (15) year property for depreciation purposes. Due to improved treatment, portions of the electrical, plumbing, mechanical systems, and site improvements of a building along with hundreds of other components can be allocated into shorter lives translating into immediate cash flow.

WHO / WHAT QUALIFIES?
  • Any commercial building type qualifies
  • Building Cost (Land Excluded) of $650,000 and above
  • Plan on hold building for a minimum of 3 years
  • Plan on doing a major demolition or renovation
  • Plan on making energy or building upgrades
  • Note: The IRS allows us to do a look back study w/o amending returns to capture missed depreciation
THE VALUE OF MONEY:

This effectively increases tax payer’s depreciation expense in today’s dollars. By recouping up to 25% – 40% of the building cost over the first 5 years as opposed to depreciating it over 39 years, translates into significant tax savings and taps into the concept of the “time value of money”.

HOW MUCH CASH ARE WE TALKING ABOUT?

On average, a CORE Cost Segregation Study offers approx. $150,000 in additional depreciation per $1 million dollars in purchase or construction cost over the normal 39-year straight-line method.

your property may also qualify for additional tax savings such as:

SIGN UP FOR YOUR COMPLIMENTARY BENEFIT ANALYSIS AND DISCOVER HOW MUCH MONEY YOU QUALIFY FOR.  THIS IS THE FIRST STEP TO TAKE ADVANTAGE OF THIS POWERFUL PROGRAM!

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PROPERTY TYPE RECLASSIFICATION
RESTAURANTS 20% TO 45%
HOTELS 30% TO 50%
SHOPPING MALLS 22% TO 40%
MEDICAL/DENTAL 22% TO 35%
INDUSTRIAL 22% TO 40%
AIRPLANE HANGARS 18% TO 35%
GOLF COURSES 28% TO 60%
RETAIL FACILITIES 18% TO 35%
THEME PARKS 16% TO 22%
OFFICE BUILDINGS 20% TO 35%
GROCERY STORES 20% TO 45%
APARTMENT BUILDINGS 20% TO 45%
FITNESS CENTERS 22% TO 45%
BANKS 30% TO 47%
MANUFACTURING 30% TO 45%
AUTO DEALERSHIPS 22% TO 40%
LEASEHOLDS 18% TO 40%
RESEARCH FACILITIES 22% TO 45%
ASSISTED LIVING/RETIREMENT 22% TO 45%
RESORTS 25% TO 45%
WINERIES 18% TO 25%
MIXED USE PROPERTIES 18% TO 30%

ARE YOU LEAVING MONEY ON THE TABLE?


We find that 8 out 10 businesses and commercial property owners are leaving money of the table every year.

CLICK HERE FOR A FREE SAVINGS ANALYSIS