Cost Segregation Services

What is Cost Segregation?

Cost segregation is a tax strategy that allows commercial property owners to significantly reduce their tax liabilities by accelerating depreciation deductions. By separating building assets into shorter recovery periods, cost segregation studies can lead to greater tax benefits and increased cash flow. Our cost segregation specialist will work with you to provide a quality cost segregation study that meets IRS guidelines and provides you with the greatest benefit.

Who Can Benefit from Cost Segregation Services?

Commercial property owners who have recently constructed, expanded or purchased buildings can qualify for cost segregation services. In addition, those who have overlooked depreciation deductions in previous tax years can reclaim them through a one-time "catch up" where adjustments can be taken immediately instead of spreading it out over multiple fiscal years.

How Does It Work?

Our engineering-based study carefully analyzes critical factors such as size and type of building being constructed, expanded, or purchased to accurately identify assets that qualify for cost segregation. These assets include land improvements, leasehold improvements, fixed assets, and personal property. By properly performing a cost segregation study, property owners can significantly decrease their tax burden in the first five years of service.

What Are the Benefits of Cost Segregation Services?

Cost segregation services provide commercial property owners with significant tax savings, increased cash flow, and reduced tax liabilities. By reclassifying assets, property owners can reduce total taxable income and leverage tax-deferred investments. Additionally, cost segregation services can help property owners comply with the tangible property regulations, provide supporting documentation for IRS audits, and defer paying taxes by treating tax savings as an interest-free loan.

Sub-Services and Features

Here are eight sub-services related to our Cost Segregation Services and their benefits:

1.  Cost Segregation Analysis - An accurate method of determining which assets qualify for cost segregation.

• • Benefit: Greatly reduced tax liabilities and increased cash flow.

2.  Newly Constructed Buildings - Cost segregation studies can be performed on newly constructed buildings.

• • Benefit: Greater tax savings through bonus depreciation.

3.  Existing Buildings - Cost segregation studies can be performed on existing buildings.

• • Benefit: The opportunity to reclaim overlooked depreciation deductions from previous tax years.

4.  Purchase Price Allocation - Our cost segregation specialist can allocate the purchase price of a building for maximum tax benefits.

• • Benefit: Increased cash flow and tax savings.

5.  Leasehold Improvements - Cost segregation studies can identify leasehold improvements that qualify for accelerated depreciation.

• • Benefit: Reduced tax liabilities and increased cash flow.

6.  Real Property Analysis - A real property analysis can help identify which assets qualify for cost segregation.

• • Benefit: Greater tax savings through bonus depreciation.

7.  Cost Segregation Study Review - Acena can review your cost segregation study to ensure compliance with IRS guidelines.

• • Benefit: Greater peace of mind knowing your cost segregation study is accurate and compliant.

8.  Recovery Periods - By separating building assets into shorter recovery periods, you can enjoy greater tax savings.

• • Benefit: Increased cash flow and reduced tax liabilities.

FAQs

Here are ten frequently asked questions about our Cost Segregation Services:

What is cost segregation?
Cost segregation is a tax strategy that allows commercial property owners to reduce their tax liabilities by accelerating depreciation deductions.

Who can benefit from cost segregation services?
Commercial property owners who have recently constructed, expanded or purchased buildings can benefit from cost segregation services.

How does cost segregation work?
Cost segregation involves reclassifying building assets into shorter recovery periods to accelerate depreciation deductions.

What are the benefits of cost segregation services?
Cost segregation services provide significant tax savings, increased cash flow, and reduced tax liabilities for commercial property owners.

How long does a cost segregation study take?
The length of a cost segregation study varies depending on the size and complexity of the building, but typically takes several weeks to complete.

How much does a cost segregation study cost?
The cost of a cost segregation study also varies depending on the size and complexity of the building but is often a small percentage of the tax savings generated by the study.

Is a cost segregation study worth the cost?
Yes, a cost segregation study can provide significant tax savings and increased cash flow for commercial property owners, making it well worth the cost.

Will a cost segregation study trigger an IRS audit?
While there is no guarantee that a cost segregation study will not trigger an IRS audit, a quality cost segregation study that complies with IRS guidelines can provide supporting documentation in the event of an audit.

What is bonus depreciation?
Bonus depreciation is a tax incentive that allows businesses to immediately deduct a percentage of the cost of qualified property in the year it is placed in service.