Cost Segregation Study Details – Building Purchase (2016) and Improvements (2017): Engineered Tax Services performed a cost segregation engineering review of building components and site improvements on a single story building used as a dental office in Waco, Texas. The cost segregation benefit included a reclassification of 39-year depreciation class life assets into 5 and 15 year class lives, resulting in a combined benefit of $66,661 on 5 and 15 year-assets for the purchase and $610,261 accelerated 5 and 15-year assets on the improvements.
Additionally, ETS’ next generation cost segregation study captured a disposition deduction of $151,967.32 for undepreciated assets no longer in service under the final tangible property repair regulations.
When combined, these additional “next generation” benefits clearly demonstrate why cost segregation has become a powerful tax tool for real estate clients as a result of the final tangible property regulations (T-Regs).
Our Next Generation Cost Segregation Reports Evaluate:
- Accelerated depreciation
- Energy tax deduction (179D) for heating and cooling systems
- Energy tax deduction (179D) for lighting systems
- Energy tax deduction (179D) for building envelope
- Dispositions for undepreciated and retired assets per Treasury Regulation (TR) 1.1168(i)-8 MACRS, or modified accelerated cost recovery system
- Expense of undepreciated basis of property subject to qualified repair per TR 1.162-4
- Expense undepreciated basis subject to routine maintenance per TR 1.263(a) – 3(i)
Engineered Tax Services, Inc. (ETS) has helped thousands of property owners nationally increase their cash-flow by accelerating depreciation through our cost segregation studies. Our cost segregation studies work to uncover potential tax savings and increase cash flow through reclassification and depreciation of property. ETS provides a “Detailed Engineering” review as part of our reporting process, working seamlessly with the IRS and your CPA firm for minimal disruption to your business. For more information, please contact us at 800-236-6519 or get a complimentary analysis here.