Engineering based cost segregation studies, permit commercial real estate owners to reclassify real property for depreciation purposes and reclassify it as more rapidly depreciated personal property. This reclassification results in significant cash flow benefit in both present and future years through considerably shorter depreciable tax life and accelerated depreciation methods.
Who Qualifies for Cost Segregation
Commercial property owners with 500K or more in purchase or building costs or lease holders with 250k or more in renovations in the last 20 years, paid federal taxes within the last 5 years or plan to within the next 2 years.
Information Needed for initial Analysis
- Date building was purchased
- Cost basis for building
- Cost basis for land, if revocations within the last 5 years how much was paid for the renovations
Go To Savings Calculator for estimated savings.