What are the Benefits of Cost Segregation?

Cost Segregation is the process of segregating the costs associated with the specific commercial real property investments in real estate. Commerical real property is depreciated over 39 years (or 27.5 years for commercial residential).

In order to qualify for Cost Segregation, properties must have been constructed, acquired, or renovated after 1986, under the IRS guidelines. The property can be a new building under construction; existing buildings undergoing remodeling, restoration or expansion; purchases of existing property constructed anytime, but placed in service after 1986; office/facility leasehold improvements on your current facility and “fit outs”.

What are the Benefits of Cost Segregation?

With the benefit of properly segregating costs, CPA’s, investors, engineers, appraisers, developers and consultants can accomplish several goals related to real estate properties:

1. A significantly improved after tax cash flows from the project due to accelerated tax depreciation.
2. Property that is identifiable for abandonment should situations change.
4. Opportunity to claim “catch-up” depreciation on future tax returns for corrections in tax depreciation.

Capital Review Group does not “estimate” or “assume” what the percentage of the basis of your reclassification of property might be. We step up and do the highly-detailed work that is absolutely necessary to provide you with the highest level of tax savings you have a right to and deserve. We complete our reports with real, measured information, gathered by professionals who know from experience what a successful submission to the IRS requires.

For more information on Capital Review Group or Cost Segregation, call Marky Moore today at 877. 666.5539 to discuss how to save taxes through proven, tested methods that the IRS will accept.

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