Cost Segregation stands as a valuable tool for commercial property owners seeking to optimize their financial strategies. By leveraging this approach, property owners can increase cash flow and reduce income taxes, resulting in improved financial performance across various sectors of the real estate industry.
The benefits of cost segregation extend to a wide range of real estate types, including but not limited to:
Apartments: Multi-family residential properties can benefit from cost segregation, allowing owners to accelerate depreciation on eligible components and maximize tax savings.
Assisted Living/Nursing Homes: Facilities catering to senior living and healthcare needs can capitalize on cost segregation to identify eligible assets and enhance cash flow.
Auto Dealerships: Dealership properties can undergo cost segregation to segregate personal property components, such as showroom fixtures and service equipment, from real property assets.
Office Buildings: Owners of office buildings can utilize cost segregation to identify assets with shorter depreciable lives, resulting in accelerated tax deductions and increased cash flow.
Restaurants: Cost segregation can help restaurant owners identify eligible assets, such as kitchen equipment and interior fixtures, for accelerated depreciation, ultimately reducing tax liabilities.
Manufacturing: Manufacturing facilities can benefit from cost segregation by segregating personal property components related to production equipment and machinery from real property assets.
Hotels: The hospitality sector can maximize tax benefits through cost segregation, allowing hotel owners to identify assets such as furniture, fixtures, and equipment for accelerated depreciation.
Medical Buildings: Healthcare facilities can leverage cost segregation to identify eligible assets and accelerate depreciation, resulting in improved cash flow and reduced tax liabilities.
Retail Space: Retail properties can undergo cost segregation to segregate personal property assets, such as display fixtures and signage, from real property assets, maximizing tax benefits.
Cost segregation involves segregating 1245 personal property components and 1250 land improvements from the real property of a building. This segregation results in depreciable lives of 5, 7, and 15 years, allowing for accelerated depreciation and increased tax deductions.
Our team of experts conducts thorough analyses to identify costs that may qualify for accelerated depreciation. We go beyond traditional cost segregation practices by breaking down costs associated with specific assets, such as electrical or plumbing required to operate machinery, from general building costs. This meticulous approach ensures that our clients can maximize depreciation deductions and optimize their tax strategies effectively.
Our cost segregation services cater to various types of transactions, including:
Constructed Facilities, Renovations, Remodels, or ExpansionsAcquisitions (Current Year or Lookbacks)Tenant Leasehold Improvements
Whether you're embarking on new construction projects, acquiring existing properties, or making improvements to leased spaces, our cost segregation specialists are here to provide comprehensive support tailored to your specific needs.