See why cost segregation is a powerful tax tool for commercial property owners

Study Details – Hotel Purchase & Improvements: Engineered Tax Services performed a cost segregation engineering review of building components and site improvements on a 3-story 50,000 sq. ft. hotel in Florida. 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 $1,188,388 on the purchase and $89,024.86 accelerated 5 year on the improvements.

Additionally, ETS’ next generation cost segregation study captured $105,354 in disposition of assets no longer in service on the purchase as well as identify $223,102.00 in qualified repairs on the improvements 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.

Author

Stay Tax-Savvy

Get expert tax tips and insights delivered to your inbox. Stay ahead with our specialty tax newsletter.

Recent Posts

r&d tax credits 2025

Unlock Growth Potential with Strategic R&D Tax Credits 2025

In today’s fast-paced economy, innovation isn’t just a buzzword—it’s a necessity. Businesses that prioritize research and development (R&D) gain a decisive edge, outpacing competitors and reshaping industries. The R&D Tax Credit, established under IRS Section 41, serves as a powerful tool to fuel this progress. Far more than a tax deduction, it’s a strategic resource for

Read More »
solar projects

Unlocking Tax Benefits for Solar Installations: How Cost Segregation Can Help

Solar installations are an increasingly popular investment for businesses and property owners, offering energy savings, environmental benefits, and tax incentives. But did you know that combining a solar installation with cost segregation can significantly enhance the financial returns of your project? At Engineered Tax Services, we work with property owners to maximize the tax benefits

Read More »
multifamily properties

Unlocking Value in Multifamily Investments: A Knoxville Apartment Case Study

For many multifamily property owners, an investment’s true potential often lies just beneath the surface. Beyond collecting monthly rents, it’s about leveraging every available tax advantage to enhance long-term returns. In the case of a well-established apartment complex in Knoxville, TN, strategic tax planning turned a traditional real estate play into a high-impact financial strategy.

Read More »

Contact Us