Did your client acquire a property or complete a large scale new construction or property renovation in the past few years?

If so, then you may have an opportunity to help them accelerate their return on capital from those investments through engineered cost segregation.

Engineered cost segregation is a tax procedure authorized by the IRS that could help your clients significantly accelerate the depreciation schedule for a variety of their assets and improvements.

♦  Typically, buildings are depreciated on a schedule ranging from 27.5 to 39.5 years, yet many of the fixtures and improvements that make up the building can be depreciated in as little as 5 years!  These improvements usually account for at least 20% of your property’s value, but for some properties this may be up to 50%. That can make a big difference in your client’s cash flow.

♦  If an engineered cost segregation study seems appropriate for your client, we will review their construction documents, evaluate those construction costs by components, and conduct a facility visit to understand how the building components are used.

We then work with your client’s accountants to refile their tax returns to reflect the reclassifications made through the cost segregation study, including providing them the necessary forms.