Do you own real estate? Maybe you own a facility that is used in your business, or a commercial or residential property that is leased. The real estate assets you own right now can bring you greater tax savings and put more cash in your pocket through cost segregation services – all without the stress of having to amend your tax returns to claim the additional depreciation deductions.

You heard that right. No amended tax return needed! You simply file form 3115.

Let our specialists perform a complimentary cost segregation analysis to help you figure out if your property qualifies for substantial tax savings and if a cost seg study is right for you.

What is a Cost Segregation Study?

Cost segregation is the process of analyzing the cost components of your real estate project – for example, site work, electrical, certain plumbing fixtures and technology upgrades to the building – and classifying these costs for depreciation purposes as personal property, land improvements or real property (buildings). This lets you write off significant parts of your building faster and lower your tax bill.

Eligible Property

Cost segregation isn’t limited to property that you recently bought or built. If you put your residential or nonresidential real property in service within the past 15 years without allocating any costs to personal property, you may qualify. What that means is you would receive permission to change your accounting method and take a deduction for all the depreciation that should have been claimed in previous years.

  • New buildings and other facilities now under construction
  • Existing buildings undergoing renovation, remodeling, restoration or expansion
  • Leasehold improvements to offices and other facilities
  • Existing buildings
  • Cost segregation benefits for restaurant owners

Using a Qualified Professional

It’s critical that all reclassification for cost segregation be identified by qualified specialists and supported with accurate studies, analyses and records. Our professionals apply their extensive tax knowledge to your needs and work with construction, engineering and other specialists to thoroughly analyze the cost components of your property. As part of our services, you will receive detailed work papers and analyses, which are absolutely essential for complying with IRS cost segregation rules.

If you want to know more about the cost segregation process, let us answer your questions.

Questions about cost segregation studies? Our professionals help clients in a variety of industries including construction, dealerships, restaurants, technology and more. Fill out the form to the left to contact Ty Riley, CPA.