0
When a future project or transacti on
may be postponed or cancelled due to
concerns about cash flow, (e.g. LEED
or energy effi ciency retrofit).
When a past project or transaction
threatens the ability to survive the
economic downturn
When it is diffi cult to gain lender support
for an acquisiti on, new constructi
on/renovati on or leasehold improvement.
When a property is "under contract"
and before sett lement.
When a new constructi on project is
being designed or considered.
When a signifi cant leasehold improvement
is completed.
Within the fi rst year post acquisiti on,
constructi on or renovati on.
What else can I help you with?
What is the process of the Cost Segregation Study?
The process of the Cost Segregation Study is one of identifying and reclassifying personal property assets to enable to shorten the tax depreciation time frame.
How can I learn about Cost Segregation?
Cost Segregation is a method used to find the greatest depreciation of multi family or commercial real estate to get the best tax credit. More information is found here www.irs.gov/businesses/article/0,,id=134180,00.html.
Where can I find more information on cost segregation services?
There are a variety of websites that offer information on cost segregation services. Have a look at http://www.uscostsegregation.com/ AND http://www.costsegserve.com/
Is cost segregation an effective audit technique?
Cost segregation can help to ensure that audits are done properly. You can also get data that can help to ensure the audits are proper.
Do cost segregation laws include improvements to real property?
Yes, cost segregation laws can include improvements to real property. Improvements that are considered to be part of the building structure may be categorized differently than those that are considered personal property for the purpose of depreciation. It is important to consult with a tax professional to accurately classify improvements for cost segregation.
What tax benefits might a property owner expect from a cost segregation study?
Here is a sample of recently completed projects and the tax benefi t to the property owner. (see table below)
What is the benefit of cost segregation services?
The biggest benefit of cost segregation services is that is creates money for the properties that implement it. This is done by helping to reduce the owner of the property's taxable income.
How do cost segregation services help companies with budgeting?
Cost segregation gives a company a clear picture of how they can depreciate their assets. You need to know this in order to know exactly what you have to budget.
Why would you not simply let your CPA do cost segregation for your company?
The complexity of IRS rules and regulations as relates to cost segregation involves not only specialized tax law knowledge, but construction engineering expertise such as the ability to read blueprints and building specifi cations. Even if your accountant understands the basics of cost segregation, without contractor/engineer expertise and a deep understanding of the relevant tax law changes, IRS Private Letter Rulings and court cases, valuable tax benefi ts will certainly be missed. IRS cost segregation audit guidelines clearly state that "a study by a construction engineer is more reliable than one conducted by someone with no engineering or construction background." It is extremely unlikely that more than a small fraction of what an owner is entitled too will be identifi ed without a cost segregation specialist involved.
How do cost segregation services affect tax payers?
Cost segregation, done properly, can reduce tax liability on real estate. It can also increase cash flow on investment properties.
What is cost segregation used for?
Cost segregation is a way to separate out personal property that is bound to real property. Personal property depreciates faster, so separating it out can give the organization tax advantages.
When was Consider the Cost created?
Consider the Cost was created in 1991.
