Anyone who has purchased, constructed, renovated, expanded or refurbished a commercial building should consider a cost segregation study to maximize tax depreciation deductions. Legislation passed in the past several years has strengthened the incentive of conducting a cost segregation study by increasing the deductibility and shortening the recovery period.

Key Points to Consider

Past or current construction, costs incurred within the last few years can yield great benefits

IRS generally agrees with the cost segregation process

Reclassified assets qualify for 5-, 7- or 15-year write-offs instead of the typical depreciation over 39 or 27.5 years

Conducting a cost segregation study can be beneficial to your organization, but the process of applying for federal and state tax purposes can be extremely complex. Our team of engineers and fixed asset specialists can help navigate the maze and provide documentation to justify the accelerated deductions. Our tax professionals stay abreast of the latest rules to identify where your company qualifies for a shorter depreciable life.

KNOWLEDGE SHARE

EXPERIENCE

Working within IRS established guidelines, our dedicated tax, construction and engineering professionals have knowledge of both the construction process and the tax laws involving property classifications for depreciation purposes. We go beyond the study itself to research and coordinate any other accounting issues related to the project.

Industries

Our top industry practices include:

  • Construction
  • Dealerships
  • Financial Services
  • Government Contracting
  • Healthcare
  • Insurance
  • Manufacturing & Distribution
  • Not-for-Profit
  • Public Sector & Governmental
  • Real Estate

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