Cost Segregation

Maximizing Your Asset Value

Annually, American business owners channel billions of dollars back into their enterprises through physical structures, renovations, and build-outs. In the dynamic landscape of today's business environment, where innovation is paramount, navigating the intricacies of the US tax code can sometimes feel like a hurdle rather than a valuable tool. Failing to segregate building costs and allowing assets to depreciate under default time frames may result in missed opportunities for optimizing tax benefits, potentially leading to higher tax burdens in the long run.

With Cost Segregation, your business can strategically break down slower-depreciating projects into individual asset components, unlocking tax advantages and mitigating long-term tax burdens. This approach rewards your investment more rapidly, providing a proactive solution to enhance tax benefits.

Maximizing Tax Benefits
& Protection

Commercial construction projects typically adhere to the Modified Accelerated Cost Recovery System (MACRS) with a 39-year depreciation schedule. Instead of relying on periodic tax benefits spread over your business's lifespan, proactive asset classification and strategic tax planning can promptly convert your construction project into an immediate tax advantage, resulting in immediate cost savings.

Included in our services:

Expertly drafted cost segregation study by industry specialists.
Change of accounting methodology work papers by our in-house CPAs.
Convenient .csv format workpapers for easy tax professional import.
Audit Defense for examination protection if necessary.

Traditional grouping of distinct components in build projects for tax purposes often results in less advantageous depreciation. Recognizing these components as standalone depreciable items can maximize immediate benefits, allowing business owners to fine-tune their tax strategy through Cost Segregation and rapidly realize the rewards of their investments.

Our Process

Submit the cost segregation intake form and all documents to your case processor.
Consultants will be notified of any additional requirements.
Engineer conducts a thorough file review to assess viability.
A credit projection report is generated, providing estimates of depreciation percentages and tax benefits.
Submit the signed consulting agreement and engagement letter to your case processor.
Schedule a site visit with the client by our cost segregation specialist.
Generate an invoice and collect payment for rendered services.
Deliverables package, including engineer report, narrative, depreciation schedules, 481(a) adjustment, form 3115, and filing instructions, is emailed to the consultant."