A Cost Segregation Study Can Reduce Your Taxes and Increase Your Cash Flow
Cost Segregation Study Request

Cost Segregation is an IRS-accepted tax planning tool that allows you to increase your cash flow and accelerate your federal and state income tax depreciation deductions on real estate you have purchased, constructed, expanded, or remodeled (including landlord or tenant improvements).

Our team will perform a detailed study of your building and identify all items that qualify for shorter depreciable lives and move them into a 5, 7, or 15 year depreciable life. Many items in your building can qualify for shorter depreciable lives, including electrical and piping systems, decorative and special finishes, lightings, wall coverings, special purpose equipment, and parking lots.

When the study is complete, we will issue a report detailing our findings as support to claim all allowable depreciation deductions when preparing your federal and state income tax returns.

$4,000,000 Commercial Building Example

Property Class Before Study After Study
39 Year Property 4,000,000 3,000,000
5 Year Property 0 360,000
15 Year Property 0 640,000
Total 4,000,000 4,000,000

 

5 Year 15 Year 39 Year With Study
Year (200 DB) (150 DB) (Straight Line) Total Deductions
2009 128,000 18,000 41,730 187,730
2010 204,800 34,200 76,920 315,920
2011 122,880 30,780 76,920 230,580
2012 73,728 27,720 76,920 178,368
2013 73,728 24,948 76,920 175,596

 

Results of Study
Without Study
Total Deductions
55,640
102,560
102,560
102,560
102,560
Increased Increased Cash Flow
Deductions (41% Tax Rate)
132,090 54,157
213,360 87,478
128,020 52,488
75,808 31,081
73,036 29,945
Total:
$622,314
$255,149

You would receive an additional $132,090 depreciation in the first year!

We invite you to call us today for a free preliminary analysis of your commercial property to see how a Cost Segregation Study can benefit you.

If you need Cost Segregation Studies, feel free to contact Ronald D. Stumpf and Maria T. Arriola!