A cost segregation study (CSS) can dramatically reduce the taxes in the earlier years of a property and increase cash flow for the real estate owner. A CSS on a new or renovated commercial property allows taxpayers to separate different components of the total construction cost or purchase price and apply much shorter depreciable lives for some of the components.
Your real estate holdings may qualify for a Berry Dunn and Bedford Capital Consulting engineering based cost segregation study. Typically, CSSs show savings that can equal four to five percent or more of the asset cost.
If you own commercial properties or apartment buildings with a construction cost or purchase price over $750,000, you have new construction projects, or you own properties that were remodeled, rehabilitated or purchased after 1986, you should consider a CSS.
Who can benefit:
Selecting the right firm to use for a cost segregation study is essential to a successful outcome. It is important you have an advisor who combines engineering and construction knowledge with the tax experience and knowledge of IRS rules.
Let us identify, separate, and reclassify qualified real and personal property into shorter depreciable tax lives.