An Overlooked and Timely TAX SAVING STRATEGY.

SETTING THE TECHNICAL EXCELLENCE STANDARD FOR THE INDUSTRY

COMMERCIAL REAL ESTATE

Any structure used for business or as rental property may potentially benefit from a Cost Segregation Study. What’s more, every $1,000,000 in costs reclassified from building to personal property usually results in more than $150,000 in net present-value savings. In fact, a Cost Segregation Study can actually provide several major benefits that include:

1.   An immediate increase in cash flow through accelerated depreciation deductions.

2.   A reduction in both income taxes and real estate property taxes.

3.   An easy opportunity to claim “catch up” depreciation on previously misclassified” assets.

4.   An independent third-party analysis that will withstand an IRS review.

IN BUSINESS, TIMING IS EVERYTHING

The ideal time for a Cost Segregation Study can vary depending upon your company’s tax situation. Our team of engineers and tax experts will work together with your management and accountants to determine the best tax planning solution that fits your specific needs. An analysis of the assets and costs to be reallocated in a cost segregation study should be conducted by a qualified engineer who has significant experience performing cost segregation studies. A trained engineer is solely qualified to identify, qualify and value ALL the assets. We believe that approximately 20%-30% of the assets that qualify for acceleration will not be identified without a trained engineer conducting the study.

FREE PRELIMINARY ANALYSIS

After obtaining some basic property information, we will provide your company with a free Preliminary Analysis that includes an estimate of the potential tax savings a Cost Segregation Study could generate, plus a written Cost Segregation Study Proposal. This free Preliminary Analysis will help your company determine the proper strategy and timing, while taking into account:

Post-Purchase, Remodel, or New Construction

Look-Back Studies

Year Placed in Service

Pre-Construction

The Cost Segregation Study Proposal will also include a flat fee, based upon the estimated time and materials required to complete the project. Which means you will have a complete picture of all associated costs and benefits well before your Cost Segregation Study is ever initiated.

WHAT DOES A COST SEGREGATION STUDY ENTAIL?

A Cost Segregation specialist will evaluate all relevant information, interview related parties, and present the findings in a clear, well-documented format. It’s a very thorough and comprehensive process that includes:

Review of Cost Detail

Inspection of Facility

Photograph & Documentation

Review of Blueprints

Cost Reconciliation Report

INTERNAL REVENUE SERVICE

Because a cost segregation study is really an engineering and financial analysis activity, the IRS strongly suggests that a third party, qualified engineering consulting firm perform the study. The IRS stated the following in a memorandum, "Most tax practitioners do not have the necessary expertise to conduct a cost segregation study which is acceptable to the IRS. The standards for such studies are high (see LTR 199921045). Thus, it is generally advisable to work with an outside consultant who specializes in this area."

Our CPA and commercial property clients trust our studies and feel secure in the fact that all of our work will withstand IRS scrutiny and come with unlimited audit defense. Our team has designed a national CPA Partnering Program that creates a win win for all parties.

GETTING A “SECOND OPINION” FROM US IS COST-FREE AND RISK-FREE

JUST LIKE THE PEACE OF MIND IT PROVIDES

PROPERTY TYPES: Estimated Percentage Range of Reallocations

Apartments (20-45%), Warehouses & Office Buildings (22-40%), Retail Stores, Shopping Centers and Malls (18-35%), Hotels (30-50%) Auto Dealerships     (20-36%), Grocery Stores (20-45%), Restaurants (20-45%), Banks (30-47%), Medical Facilities (25-45%), Golf Courses (28-60%), Manufacturing Facilities (30-60%), Theme Parks (16-22%), Airplane Hangers (18-35%), Assisted Living/Retirement (22-45%), Leaseholds (18-40%), Fitness Centers (22-45%), Resorts (25-45%), Wineries (18-25%), Mixed Use Properties (18-30%), TV/Radio/Cell Companies (22-40%) and Tenant Improvements (Varies on scope)