Cost Segregation

Cost segregation is extremely beneficial and widely accepted tax planning strategy that accelerates depreciation deductions, defers taxes, and improves cash flow. A Cost Segregation Study (CSS) is an engineering analysis that reclassifies or “segregates” real estate components and improvements between real and personal property in order to accelerate the depreciation periods from either 39 or 27.5 years to 5, 7, or 15 years.

A CSS requires a highly specialized, engineering-based approach to identifying assets within a building that can be reclassified into a shorter depreciation class than the building itself. It maximizes the inherent tax benefit of real estate by identifying, quantifying and segregating the personal property and land improvement components of the property. It is not uncommon for an engineered CSS to generate on a net present value basis, hundreds of thousands of dollars, or more.

The tax benefits can be applied to almost all commercial property types including: 

  • Office buildings
  • Apartments
  • Assisted living facilities
  • Industrial facilities
  • Surgical Facilities
  • Auto dealerships
  • Hi-tech facilities
  • Hotels
  • Resorts
  • Manufacturing
  • Medical buildings
  • Restaurants
  • Shopping malls
  • Banks
  • Cold storage facilities
  • Warehouses

If you qualify, please click here to apply for a complimentary estimate of savings and to ensure you do not overlook valuable opportunities that result from the benefits of a study.