Reduce Tax Liability
A Cost Segregation Study is a structured engineering analysis of real estate property using an IRS approved tax strategy that allows a property owner to accelerate depreciation from a 39 or 27.5 year schedule to as few as 15, 7 or even a 5 year schedule. The result of a Cost Segregation Study can reduce tax liabilities and can improve cash flow.
Improve Cash Flow
A thorough detailed engineering analysis is needed to realize these tax and cash flow benefits. To qualify, the Cost Segregation Study must meet all IRS requirements and standards and the study must be performed by a team with a complete understanding of construction methods, materials, costs and tax depreciation implications, while remaining up to date with changes in IRS tax regulations and court rulings.
The Process
A properly prepared Cost Segregation Study can substantially improve cash flow immediately upon successful completion. Improved cash flow benefits from the study can be realized prior to tax filing to achieve reduced tax liability by adjusting quarterly tax payments.