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Cost Segregation Company in Chicago, Illinois

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A cost segregation analysis is a strategic tax planning tool that enhances your immediate cash flow by postponing tax payments. By conducting a cost segregation study in Chicago, you could potentially deduct up to 30-35% of your property's initial acquisition cost in the first year! 

This is possible because depreciation reflects the declining value of a building as it ages. In reality, your building consists of multiple individual elements (like lighting systems, HVAC units, etc.), each of which degrades over time. 

However, these elements are categorized differently from the entire building, which is typically depreciated over 27.5 or 39 years. Individual components are often allocated shorter depreciation periods of either five or 15 years. This accelerates the depreciation benefits, particularly in the early years. No matter if your real estate property in Chicago is for residential or commercial use, you have the flexibility to spread out this expense over a period of 27.5 or 39 years. 

Maximize your depreciation benefits!

Explore your property's potential with our cost segregation services in Chicago. Contact ETS today for a detailed analysis. 

Frequently Asked Questions

How Much Depreciation Can Be Accelerated for Your Owned or Leased Property in Chicago? 

The application of cost segregation can lead to varying degrees of accelerated depreciation, depending on the specific type of property. Each property type, be it residential, commercial, industrial or special-purpose, has unique attributes that influence the potential for depreciation acceleration. The table here presents a range of percentages, indicating the potential for accelerated depreciation applicable to each property type in Chicago. 

What Is the Best Time of the Year to Do a Cost Segregation Study? 

Anytime—as long as you commission your cost segregation study before a construction rehab. Because cost segregation sets a baseline for the original purchase, it’s easier for a cost segregation company in Chicago and the IRS to set that baseline by performing the study before the rehab, with an engineer documenting the reclassification, before the improvements are made. It’s harder to document your rehab costs after you’ve renovated. 

How Much Should a Cost Segregation Study Cost?

The fee for a cost segregation study in Chicago should be between $3,000-$12,000. However, the capital outlay is more than worth it, considering you can save hundreds of thousands, if not millions, in taxes by commissioning a study. The ROI is amazing.

Contact Us Today

Chicago

(800) 236-6519

Get Your Questions Answered about Cost Segregation!

Our Cost Segregation Specialists are happy to answer your questions about this federal income tax tool.

Webinars:

Possibilities: How to navigate economic uncertainty as a real estate investor

Webinar covering Cost Segregation, Bonus Depreciation, energy-efficient tax credits and more. 

Brochure:

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Case Studies

Cost Segregation Study on a Apartment Complex in Upstate New York

$1,894,081.46 in 1st year Total Realized Tax Savings Without a Cost Segregation Study, an upstate New York $26 Million new construction apartment complex placed in ...

Cost Segregation Study On a $14 Million Dollar Office Building in Rochester, NY

$4,409,456.95 in first year tax savings Purchased in 2018 for $14 million, this office building in Rochester, New York would have generated a first-year depreciation ...
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Cost Segregation Study For Business Center, Brentwood, NY

$1,151,083.12 in first year tax savings Had investors in this $10.3 million business center in Brentwood, New York taken the straight-line depreciation rate, the property ...

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