Unlock Hidden Tax Savings with Expert Cost Segregation Services

Building costs are generally classified for federal income tax purposes into three categories:

1. Tangible Personal Property,
2. Land Improvements, and
3. Real Property.

Cost segregation was first applied and performed by major accounting firms with in-house cost segregation departments on the largest properties of their most significant clients. Study costs were routinely upwards of $100,000.

The COST SEGREGATION STUDY was created using the methods and protocols to deliver this same service to commercial property owners at very affordable rates. By choosing a COST SEGREGATION STUDY, you can take advantage of this tax-saving strategy that was once only utilized by the owners of substantial properties.

Without a COST SEGREGATION STUDY, your tax professional will only be able to accelerate certain assets. A COST SEGREGATION STUDY provides your tax professional with accurate engineering-based information to establish 5-, 7-, 15-, and 27.5- or 39-year depreciation schedules. When these schedules are applied, there are substantial increases tax in savings in the earlier years of owning your property.

1. Cost segregation is for newly purchased or constructed buildings, and also buildings that have been in in-service for many years
2. Buildings or building improvements with a remaining depreciable basis are potential candidates
3. Your building or improvement cost basis is at least $200,000
4. You anticipate holding the property for at least three years

Get Your Complimentary Qualification Check

A COST SEGREGATION STUDY normally takes approximately six weeks from the time we receive all the appropriate documentation.

If you are a U.S. taxpayer with a tax liability, a cost segregation study can be a lucrative tax strategy. Let us provide you with a complimentary preliminary analysis to determine potential tax benefits.

Although a COST SEGREGATION STUDY has never triggered an audit, (and should not if done according to the tax code), if you are under audit for any reason, and the COST SEGREGATION STUDY comes into question, CSSI® will defend the audit at no cost.

A study can be completed in the year the building or improvements is placed in service. However, the U.S. tax code allows taxpayers to “catch up” on the depreciation that was not claimed from the first day the property was placed in service without amending prior years’ tax returns. A cost segregation study should be considered on any property with a remaining depreciable basis.

While each study differs, we generally request the following information, if available:

1. A current tax depreciation schedule
2. Building cost information
3. Blueprints or architectural drawings and renovation plans, if applicable
4. The property will need to be available for an on-site inspection and walk-through

We can assist you in gathering the necessary data.

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No. However, for projects not yet constructed, we can provide estimates on tax savings from your construction budgets. A COST SEGREGATION STUDY can be delivered when construction is complete.