Cost segregation studies are completed in order to maximize federal income tax depreciation deductions by identifying fixed assets and their costs. This engineering-based study gives you an exact tax plan to accelerate property depreciation and helps cut your costs.
With this study, real and personal property are categorized into acquisition/construction costs and then applied to the appropriate IRS tax credit.
Through a cost segregation study, properties can be reclassified from a standard 39 year depreciable life to a 5, 7, or 15 year depreciable life, which enhances federal tax credit savings, and improves cash flow. Building and property owners are also able to retrieve missed deductions from previous years.
Who qualifies for a cost segregation study?
Almost any property can benefit from a cost segregation study. National Tax Group has performed cost segregation studies for a variety of industries.
Learn about industries that qualify for a cost segregation study:
There are many projects that business owners, architects, companies, and individuals can do in order to speed up depreciation deductions.
Qualifying projects include
- The construction of new buildings
- The renovation or expansion of existing buildings
- The purchase of a building
- The renovation of a leased building
How do Cost Segregation Studies work?
- On-site auditing
- Service benchmarking
- Documentation as per IRS guidelines
- Tax deduction strategies
- Appropriate allocation of all indirect cost
- Identifying substantial amounts of accelerated depreciation
- KPI measurement
- Legal compliance
- Final reports for easy-to-use data for tax planning
For federal income tax purposes, building costs are classified into
- Tangible property
- Land improvements
- Real property
Our analysts and accountants will thoroughly evaluate your assets. Then a licensed deduction calculator is used to identify assets that will be segregated.
Once the site visitation procedure is complete, the study will take up to 4 weeks to complete.
Why choose National Tax Group’s cost segregation services?
With the combined expertise of engineers, construction specialists, and accounting professionals, we can handle complex and time-sensitive cost segregation studies. Our main objective is to facilitate maximum tax savings, and improve cash flow.
To learn how you can benefit from a cost segregation study, contact our team today.