When purchasing, constructing, renovating, or expanding a facility, there are
numerous expenses incurred that, if not segregated into proper classifications
for federal income tax purposes, will be left to depreciate as real property
over a 39 (non-residential real property) or 27.5 (residential real property)
year period.
A cost segregation study identifies and segregates shorter-lived assets
of the property, such as land improvements (landscaping, fences, roads,
and sidewalks), fixtures, floor coverings, specialty lighting, special
purpose electrical, mechanical and plumbing systems, site utilities, and
drainage systems, an accelerates the depreciation deductions to defer taxes
and increase cash flow.
THE BENEFITS ARE HARD TO IGNORE
- An immediate increase in cash flow and better rate of return
- A reclassification of 15% to 30% of your expenses into shorter-lived
categories, on average
- For every dollar reclassified into shorter-lived asset categories, an
approximate 8% and 18% net present value savings
- Retroactive "catch up" depreciation on assets previously depreciated
over longer lives
- An official report, completed by an independent third-party, that
provides an audit trail to substantiate the allocations
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COHEN & COMPANY IS
THOROUGH AND EFFECTIVE
When you hire Cohen & Company's Real Estate Services Group to perform
a Cost Segregation Study, you can expect to receive one of the most
thorough reports in the industry. Our professional team of CPAs and
subcontracted engineers will:
- Carefully review blueprints and other architectural/engineering
drawings and specifications, construction documents, contractor bid
sheets, company fixed asset ledgers, cost records, asset purchase
agreements, and tax records to extract useful information
- Spend time on-site to physically examine and photograph the property
- Issue a comprehensive, fully documented report that will detail
our methodologies and include an allocation of project costs and
asset classifications, property definitions, depreciation report,
and project photographs
Call us at 216-579-1040 or 800-229-1099 to arrange a no cost, no obligation
meeting to discuss the feasibility of a cost segregation study. Or,
click here for our Cost Segregation Request form,
to send an information request to
Tony Constantine.
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