Cost Segregation
Cost Segregation
A cost segregation study is a powerful tool for owners of real estate. It provides a method of accelerating depreciation on real estate acquisitions or capital improvements. Real estate owners of multi-family, retail or commercial properties may be asking: Can we save a significant amount on taxes? It is possible with the right tax planning guidance following a cost segregation study.
A cost segregation study identifies and reclassifies personal property assets to shorten their depreciation life for tax purposes, which is a method for reducing current income tax obligations. Personal property assets include a building’s non-structural elements, exterior land improvements and indirect construction costs.
It’s the planning and client interaction throughout the year that really provides value to both parties in a real estate transaction. The more we know, the more we can help with ideas such as cost seg studies. That’s the Walter Shuffain way.
- Jonathan Yorks, CPA, Managing Shareholder
Presenting you with opportunities that other CPA firms may overlook is a small step in our consulting process. The value comes from tax advantages over time. With proper entity structuring, accounting treatment and research, we support future acquisitions, exchanges and/or sales.
As consultants to real estate developers, private equity funds, investors and business owners, Walter Shuffain is a recognized leader in real estate consulting. Whether you need us today, tomorrow or 20 years from now, you have a partner in Walter Shuffain.
Articles of Interest
Strategies for Managing Capital Gains in Business
The Role of Tax Planning in Sustainable Business Growth
Writing Off Abandoned Project Costs for Real Estate: A Guide for Maximizing Deductions
