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.

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