Cost Segregation Studies allow you to depreciate your commercial property over a shorter period of time. The savings can be substantial.
The current depreciable life of real estate is 39 years for commercial (office, warehouse, retail, manufacturing) facilities and 27% years for apartment buildings.
The cost segregation study identifies and substantiates the specific components that are eligible for this accelerated depreciation.
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| Type of Property |
Average % * |
| Warehouses |
15% - 20% |
| Apartments |
20% - 25% |
| Retail |
30% - 40% |
| Restaurants |
30% - 40% |
| Banks |
25% - 35% |
| Offices |
15% - 20% |
| Manufacturing |
35% - 45% |
| Grocery Stores |
35% - 45% |
| * Reclassified Costs |
Tax savings for our clients have ranged from $45,000 to $2.5 million.
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Some property owners believe that every CPA is qualified to perform this study, but this is a misconception. In order maximize the number of deductions you are entitled to the work should be performed by a team of qualified experts including an experienced cost estimator and a CPA who is knowledgeable about construction and experienced in conducting cost segregation studies. We know how important it is to substantiate the maximum amount of deductions, so we have assembled a team that also includes a cost estimator, contractor, and engineer who assist us when required. Cost Segregation Solutions has provided services to the real estate and construction industries for over 25 years.
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