Get Your Free Cost Segregation Analysis
Let's get started by talking to one of our Cost Segregation experts to see how much we can save you by getting a FREE Cost Segregation analysis.
Cost Segregation For Commercial Buildings
If you’re an investor who has recently acquired or are building a commercial property, you should know about the advantages of having a cost segregation study performed for your business. Cost segregation studies are most useful for commercial real estate.
As your building ages, it loses value. That’s called depreciation. When you do a cost segregation study, it classifies your building’s components (like the lighting system) into shorter recovery periods so you can write off the components faster in your taxes and reduce taxable income. The study carves out certain qualifying portions of your building into five-, seven- and 15-year lives that are normally accounted for in 39- or 27.5-year categories.
Here are some examples:
- 39-year property: Windows, walls, doors, roofs, HVAC systems, plumbing, electrical
- 15-year property: Exterior improvements such as fencing, exterior signage, asphalt, curbs, landscaping, exterior lighting
- 5-year property: Carpeting, appliances, specialty lighting, woodwork, unit partitions, individual unit locks, security, business-specific heating and ventilation systems
Benefits of a Cost Segregation Study
- An immediate increase in cash flow
- A reduction in current tax liability
- The deferral of taxes
- The ability to reclaim “missed” depreciation deductions from prior years (without having to amend tax returns)
List of Eligible Commercial Businesses
- Restaurants (both eat-in and fast-food)
- Retail and chain stores
- Grocery stores
- Shopping malls
- Office buildings
- Gas stations
- Auto sales lots
- Hospitals and healthcare facilities
- Factories and manufacturing plants
- Theme parks
- Sports stadiums and arenas
- Rental apartment complexes.
Case Study: Self Storage
eBook: Property owners guide to Cost Segregation
Learn how you can significantly increase your tax savings with a Cost Segregation analysis.
Case Studies Cost Segregation
Cost Segregation Study For Medical Offices, Myrtle Beach, South Carolina
$816,972.02 in first year tax savings Without a Cost Segregation Study, this $1.8 Million Medical Office Building in Myrtle Beach, South Carolina purchased in 2020 …
Cost Segregation Study For Business Office Buildings McKinney, TX
$718,246.32 in first year tax savings Taking the straight-line depreciation value, these $3 million business offices in McKinney, Texas would have generated a first-year depreciation …
Cost Segregation Study For Dental Office Building, Wake Forest, NC
$737,624.51 in first year tax savings This dental office in Wake Forest, North Carolina was purchased in 2020 for $2.4 million. By applying a cost …
Top Articles: Cost Segregation
The Unique Benefits of Cost Segregation for Car Washes
For those in the car wash industry seeking ways to boost their financial performance, an often overlooked yet highly beneficial tax strategy exists: cost segregation …
Capitalize on Tax Planning Opportunities in Self-Storage Industry
The self-storage industry has witnessed remarkable growth in recent years, driven by the increasing demand for space to store personal belongings and business items. This …
Cost Segregation: A Tax Strategy for Office Building Owners
As an office building owner, navigating the complex world of taxes can be a daunting task. With commercial properties subject to a variety of tax rules and regulations, it's easy to get lost in the details and lose sight of your bottom line. That's where cost segregation comes in.