What is a Cost Segregation Study?

Unlock the Hidden Capital in Your Building

Building owners are able to qualify for a lucrative engineering-based study that will evaluate the components which currently exist inside of a building, and reclassify real property as personal property in order to accelerate depreciation in the shortest amount of time permissible. When a study is performed, real and personal property are categorized, unlocking otherwise unnoticed and unused capital that can be invested back into the business. After a study is performed, building owners can see a substantial increase in their building's cash flow through these significant tax savings.

The Fundamentals of Cost Segregation

Building and property owners who haven’t taken advantage of cost segregation studies are missing out on substantial tax-savings. Additions and small installments an owner has made to enhance the aesthetics of their building, can allow for significant tax savings. This includes light fixtures, and window installation, the building’s walls, roof, foundation, doors, beams, and fire protection.

How Does Cost Segregation Work?

Some components of a building depreciate at a faster rate than others, and need to be replaced before their typical 39-year depreciable life.

Through this study, engineers examine all components and asset classes in a building, and reclassify them to values of 5, 7, or 15-years, rather than defaulting to the traditional 39 years.

Even if a building has had a study performed in the past, there may have been missed opportunities for increased cash flow.

The Difference is Real

National Tax Group is a third-party tax company looking to help businesses claim tax incentives. We truly care about our clients and work to make the process a smooth one. Our engineers are prepared to perform a site visit anywhere in the United States. There’s no risk in picking up the phone and having us evaluate the savings your building can get you. Contact us to start the process of unlocking the hidden capital in your building.

Our in house engineers and tax experts are ready to maximize your tax credits.

Talk to one of our team members to get started.

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