Cost Segregation Study
What is Cost Segregation?
Cost segregation makes distinctions.
A cost segregation study could draw distinctions between types of property.
And a cost segregation study could draw distinctions that reflect the differences in depreciation rates. For instance, consider that generally a heating/ventilation/air-conditioning system depreciates faster than the building itself.
Rate of depreciation is absolutely a worth while tax consideration.
How Could I Benefit?
If you purchase a building to operate your business out of, you must depreciate your purchase price over 39 years.
If you do a cost segregation study, the study will break the building into several components (like the heating system) that can be depreciated faster.
Faster depreciation means a greater deduction now and you’ll pay less taxes.
Do I Qualify?
Since 1987, Property that has been:
- Purchased
- Constructed
- Expanded
- Remodeled
Is likely eligible for a cost segregation study.
How Do I Start the Process?
A cost segregation will require two levels of expertise.
- A Qualified Engineer or Expert to draw the distinctions between the structure and the electronic components of a building.
- A Tax CPA to interpret the data for tax purposes.
We’ve teamed up with an engineering firm.
When you’re ready, give us a call.
