What Is Cost Segregation And How Much Tax Deductions Can We Generate?

Cost Segregation helps building owners save money.

If you are paying Income Taxes, as a building owner you can use Cost Segregation to help lessen your tax burden

You will want to consult a professional Cost Segregation Services firm that specializes in this process to help you make important decisions

If you have more than one building, you will want to see if you can use Cost Segregation to benefit all of your buildings, this may free up much needed funds that you can use for other aspects of your business.

There may be some areas of Cost Segregation that you simply do not understand and this is where a knowledgeable Cost Segregation specialist can guide you through the process and help you understand anything that you have concerns about

In most cases, a building owner’s Tax Professional is aware of the Cost Segregation process, however, because engineering based Cost Segregation is not an accounting specialty, most Tax Professionals do not offer this service in house

At CSSI, Cost Segregation is all we do! We are the premier provider of Engineering-based Cost Segregation Studies in the USA. If you’d rather not overpay your taxes, request a free quote on the right of the screen.

Cost segregation was first applied and performed by major accounting firms with in-house cost segregation departments on the largest properties of their most significant clients. One study originally cost upwards of $100,000. Now companies can deliver this same service to commercial property owners at very affordable rates. This means you can take advantage of these tax savings that were once only enjoyed by the owners of exceptionally large properties.

But be very careful, not all Cost Segregation Studies are the same, there are several types

We ONLY utilize engineering based principles, which obviously have the MOST supporting documentation

So to get your estimate please fill out the form and I will contact you EXACTLY as you want!

Great! Did your tax pro hire an engineering firm to complete a site survey? If not, they typically outsource these to an outside firm such as ours, so let's run your numbers and make your team aware of these potential additional deductions.....don't wait plan now before tax deadlines!

If you don't decide to use our firm to assist, that's okay too.

Yes, if you or the entity,

1) Purchased, constructed, or remodeled property after Jan. 1, 1986, and

2) Anticipate holding the property for a few years.

The main question may be, does your tax situation warrant you or the entity to "go back" or "go forward" with these massive amounts of deductions.

Most likely. We are simply asking permission to run a free quote. Just fill out the form and we will respond exactly how you choose.

As soon as you can, but only if you want the tax deductions now or in the near future. So plan ahead of any tax deadlines, to positively effect your tax liability starting today!

Since our studies will take 4 to 6 weeks the sooner the better. If our engineering team receives all data maybe even 4 weeks

Also, it is best to have a study completed for the year the building or improvements are placed in service. However, US Tax Code allow taxpayers to “catch up” on the depreciation that was not claimed from the first day the property was placed in service WITHOUT amending prior years’ tax returns. Furthermore, the US Tax Code allows for the “catch up” period all in the first year rather than over four years, when the Revenue Procedure 99-49 was first introduced.

A cost segregation study can be performed on any property constructed, acquired or remodeled since Jan. 1, 1986.

Building costs are generally classified for federal income tax purposes into three categories;

(1) Tangible Personal Property,

(2) Land Improvements, and

(3) Real Property.

Each has a different recovery period and method under the Modified Accelerated Cost Recovery System (MACRS). An engineering-based analysis is performed by professional personnel with in-depth knowledge of construction methods, materials, and building components can perform a detailed analysis to properly identify the building components and improvements that will be reclassified to take advantage of accelerated depreciation.

Without a Cost Segregation Study your accountant will only be able to use straight line depreciation, 39 or 27.5 years.

A Cost Segregation Study provides your accountant with accurate information to establish 5, 7, 15, and 27.5 or 39-year depreciation schedules, which substantially increases tax savings in the earlier years of owning your property.

Absolutely NOT!

In fact, since every one of your buildings' systems and components will have an exact number, you will finally be compliant, with all of the necessary engineering based supporting documents, generated by our team of 22+ engineers.

No. However, for projects not yet constructed, an estimate can be provided on potential tax savings from your construction budgets.

If you’ve owned your building for less than 15 years and the original cost of your building (plus any improvement costs) is $300 K or more, you should qualify for Cost Segregation.

If you’ve owned your building for more than 15 years but you’ve made significant improvements in the last 15 years, you should get a free quote as you very well may benefit from Cost Segregation.

This will also work for any leasehold improvements you have made in excess of $200 K.

Are there any reasons not to get a Cost Segregation Study?

Yes. Two reasons not to get a Study done would be:

1. If you plan on selling your building soon.

2. If you simply don't owe any taxes. (then there is no reason to increase your tax deductions).

How much will I save in taxes?

Find out how much! Fill out the short form above, and we will have your figures within 72 hours.

Sure, that is what we do!

The tax savings from Cost Segregation will differ depending on variables such as how long you’ve owned the building, how much you paid for the building including improvement costs and what the use of the building is – how complex it is.

Here are some recent examples of projects we have completed:

Retail:

Building Cost: $ 5,880,000

Tax Savings for Client: $277,477

Apartment Complex:

Building Cost: $1,314,163

Tax Savings for Client: $105,416

Bowling Center:

Renovation Cost: $613,320

Tax Savings for Client: $34,000

Warehouse/Office:

Building Cost: $1,500,000

Tax Savings for Client: $196,735

Office Park:

Building Cost $2,528,731

Tax Savings for Client: $183,499

Hotel:

Building Cost: $3,773,862

Tax Savings for Client: $182,085

How much will you save in taxes? Fill out the short form above to request your free quote!

Since we have 22+ Engineers on staff and have completed over 45,000 Studies in every state, rest assured that our Studies will allow your building to finally be compliant, with all of the supporting documentation and guidance needed for years to come.