If you own depreciable property, are constructing or purchasing real property, or are expanding or making leasehold improvements on your existing facilities, a cost segregation study can result in significant tax savings – and increased cash flow for your business. The study identifies opportunities for you to separately depreciate personal property components of a building that are unrelated to its operation and maintenance over shortened depreciation periods and using accelerated depreciation methods. Examples of personal property assets include items such as wall coverings, carpet, accent lighting, certain parts of the electrical system, sidewalks, and landscaping.
Even when you have had no recent construction projects, a cost segregation study can identify under-depreciated assets dating back to 1987, allowing you to benefit from catch-up depreciation and still realize significant savings. Cost segregation studies can be beneficial to clients in a wide range of industries and can also result in savings in the areas of real estate and sales and use taxes.