Cost Segregation Services Free Capital, Increase Cash Flow And Improve ROI A Cost Segregation Study is one of the best tax strategies available to property owners. Real property with buildings constructed, expanded, purchased, or remodeled after 1987 at a cost greater than $750K are eligible. While cost segregation studies are more valuable to newly constructed buildings, retroactive deductions are available for older buildings to generate catch-up depreciation benefits. Cost Segregation is a strategic tax planning tool that helps increase real estate cash flow by accelerating depreciation deductions on real property to defer or reduce federal and state* tax obligations. This strategy can help free capital, increase cash flow, and improve return on investment. All helping to make the funding of new construction projects more feasible to the benefit of owners and contractors. Additionally, a cost segregation study creates an IRS audit trail with proper documentation to help resolve IRS inquiries early in an audit’s timeline. It is usual to find 20-40% of total building costs in non-residential buildings are eligible for reclassification into shorter life asset classes in a cost segregation study. Often building systems, components, and construction-related costs can be reclassified for accelerated depreciation into 5, 7, 10, or 15-year lifespans instead of the straight-line 39.5-year depreciation for non-residential buildings. Accelerated Depreciation Asset Examples Fencing Finish Components Land Improvements Landscaping Parking Lots Site Utilities Specialized Electrical/Mechanical/Plumbing Additionally, building structural components such as HVAC systems, roofing, and windows, can be further segregated out so loss deduction can be claimed on them when replaced. It’s never too late to perform a cost segregation study. Retroactive cost segregation analyses on older, eligible properties allow an opportunity to capitalize on unrecognized depreciation to increase current-year cash flow and help fund expansions or renovations. Let’s Discuss Cost Segregation for Your Property *Before undertaking a cost segregation study, consult with your CPA as this is a federal tax strategy that some states may not allow. ABOUT US CCM is devoted to making projects successful and delivering on time, accurate results. As a full-service consulting firm, our variety of competences and dedicated resources will help meet your greatest planning, environmental, engineering, architecture, construction and energy challenges. LINKS Cost Estimating Services Cost Segregation Construction Cost Control Past projects Featured Projects About Our Team Community Involvement Careers News CCM, INC. 2413 N. Main Street Fort Worth, TX 76164 (817) 625-6200 info@constructioncostmanagement.com Copyright © Construction Cost Management 2021 | Legal | Website designed by Bold Entity