Qualifications for Cost Segregation

 A “fully engineered and accounted” Cost Segregation Study allows commercial property owners to write off their property (new and existing) in the shortest time permissible under IRS tax laws, thus minimizing overall tax liability and improving cash flow.   

ELIGIBILITY for Cost Segregation:

  • Must be a “for profit” entity
  • Must have an IRS tax liability
  • Must have owned property less than 15 years (actual building can be older)
  • Valuation minimum of $800,000 on Commercial Property (including major renovations, restorations and/or expansions)
  • A minimum of $450,000 in leasehold improvements or build outs (not FF&E)

Who Will Benefit from a Fully Engineered Cost Segregation Study?

A fully engineered study conducted by our Team of Engineers, Accountants and Construction Professionals can assist you in identifying opportunities to claim accelerated depreciation. A study is beneficial if you are:

  • Acquiring an existing building
  • Building a new facility
  • Renovating, expanding or improving an existing building
  • Conducting leasehold improvements