Cost Segregation

A Cost Segregation Study involves a qualified specialist who is able to (1) identify depreciable cost basis into the appropriate property classes in order to maximize the acceleration of depreciation deductions; (2) explain the rationale for such asset classifications; and (3) substantiate the cost basis of each asset.

From new construction or acquisitions to property in its first year of service, a Cost Segregation Study can be conducted to maximize depreciation deductions resulting in cash tax savings. A properly documented Cost Segregation Study will allow taxpayers to maximize the benefit of the depreciation rules and protect against anticipated increased IRS scrutiny in this area. Our experienced professionals are able to efficiently perform an analysis of a building and its components to optimally classify the assets for tax depreciation purposes. In addition, we describe the methodology that was used and we detail the steps that were taken to classify assets and determine costs.