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 | |||||||||||||||||||||||
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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!