Cost Segregation

Properly used, cost segregation studies and sales and use tax analyses can save taxpayers significant amounts of money. We are pleased to offer these services to our clients.

Cost segregation studies are used to reduce income tax and property tax liability by properly allocating the unitary cost of a real estate acquisition, construction project, or major equipment purchase into (as appropriate) long-lived real property, short-lived real property, personal property, improvements to land, land, and intangibles.

Income tax liability is reduced by allocating a portion of the cost to shorter depreciation periods. Property tax liability is reduced by the exclusion of intangibles and by identifying the portion of the total that is personal property, which depreciates more rapidly than real property.

Our normal procedure for cost segregation
analysis is as follows:

• Analyze client records and appropriate industry resources to break
      the total project or acquisition cost into its component parts
• Report the results of the analysis to the client
• Advise the client on how to use the results of the analysis
• Refine the allocation of asset values to maximize tax benefits
      from accelerated depreciation
• Allocate assets between real, personal, and intangible property
      to minimize property tax burdens
• Assist in the preparation of amended personal property tax returns
• Represent the client in negotiations of appeals with taxing authorities,
      e.g., real property assessment appeal