Cost segregation studies

Changes in the Tax Cuts and Jobs Act have made this strategy even more attractive to real estate investors.

Bonus depreciation has changed tremendously over the past few years as companies use it to focus on revitalizing and rehabbing their companies and properties.

Cost segregation treatment has been around for a long time, so why is it more relevant now than ever? The answer: bonus depreciation.

Preparers and their clients often cannot recognize quality differences among service providers, leading to buying decisions based on who proposes the lowest fee or promises the highest tax benefit.

I hear the comment all the time, “If I do cost segregation, I’ll just give it all back in recapture when I sell.” Allow me to debunk that myth and more.

Traditional cost accounting for mixed-use residential projects often does not properly allocate all construction costs to each section of the property.

There isn’t much evidence suggesting the implementation of a cost segregation study on a tax return, by itself, will trigger an IRS audit.

A properly designed and implemented construction tax planning analysis will proactively identify tax savings related to new and planned construction projects.

For many years, corporate accounting professionals have been taking advantage of cost segregation studies to provide significant tax benefits for their businesses by accelerating the depreciation on qualified fixed assets.