Cost Segregation
A cost segregation study is an in-depth analysis of the costs incurred to build, acquire or renovate a real estate holding.
The primary goal of a cost segregation study is to identify all construction-related costs that qualify for accelerated income tax depreciation. Small or large, your business can save money with a cost segregation study, typically many times the amount you invest.
Members in the CPAmerica International network of CPA and consulting firms have years of experience dealing with complex tax issues such as depreciation. The firms’ CPAs and construction specialists have the knowledge to help you accelerate the depreciation period, which increases depreciation expenses and therefore lowers net income. They recommend a cost segregation study project only if the estimates of tax savings offset professional fees.
By combining the expertise of CPAs, architects and engineers who are experienced in cost and construction estimating, tax codes and IRS documentation, members can:
- Review architectural/engineering drawings and specifications, blueprints, contracts and invoices
- Reconcile all project costs
- Itemize assets that qualify for shorter life classification
- Inspect the facility
- Allocate indirect costs
- Recalculate depreciation schedules
- Prepare tax filings and issue a report
CPAmerica International member firms are industry leaders in providing cost segregation study services. Call to discuss potential savings benefits on your real estate holdings.
