It is amazing how many property owners that hold their properties for profit or house their businesses in purchased real estate are not aware of one of the best tax incentives to property ownership - Cost Segregation. 

Accelerating depreciation on investment property through engineering-based cost segregation is one of the smartest decisions an owner can take to increase cash flow.  It is a great solution for immediate increased cash flow for the property owner.

Many owners think that their CPAs would be recommending or completing this work to maximize their income tax breaks.  CPA's are great at seeking opportunity but they are not likely able to perform a construction engineered cost segregation study because it requires a different skill set.  In fact an owner should seek a company that is experienced in cost segregation. 

Furthermore if a CPA does not typically complete the IRS required documentation (3115) to change the depreciation schedule for a study, they are probably not going to reccommend a cost segregation study.   We have a solution for that.

Fortunately, owners of commercial and rental property are referred to us not only because of our ability to maximize depreciation through every allowable method listed by the IRS in the Cost Segregation Audit Techniques Guide but because our tax team will provide the documentation needed by the IRS and we defend our studies.  We provide the documentation at a limited risk to the CPA and the client.  Basically if the information we receive is acurate the study will be too.

We prefer to work hand in hand with the tax professional to assure the tax strategy matches the clients’ tax circumstances.

Major motivations to investigate a cost segregation provider include:

·        inability to get cash for improvements

·        desire to start capital improvements but not have the improvement to reflect in the books (as a loan)

·        need for cash flow to meet day to day expenses

·        the ability to finance green initiatives – specifically applicable for solar, but unable to finance a roof replacement prior to the solar installation.  This roadblock often prevents the owner from moving forward with the solar installation.