An area often overlooked is the abandonment/partial disposition from renovations. It can be challenging to abandon all of what is being renovated but our team of experts know how to utilize abandonment to its fullest. If you have renovated all or part of your commercial property, we can accelerate the remaining depreciation for that disposed asset, increasing your benefit while having the engineering back up required by the IRS. The ability to identify and retire (abandon) assets brings a significant additional value above and beyond the initial cost segregation report.
Additionally, this level of detail within the report produces more tax benefits and the ultimate protection under an IRS review or audit.
New regulations have made it more beneficial for certain types of repairs/renovations and leasehold improvements, making a cost segregation study more valuable than before.
Cost segregation is more important now, particularly because of the Repair vs. Capitalization & Asset Retirement, which takes the burden off your firm and allows us to include in our cost segregation study, adding the most protection to your clients and providing additional ways to reduce your client’s tax liability.
Demolition & Rehabilitation
A cost segregation study will identify the components of a building,
which can be classified as personal property versus real property for
write-off versus capitalization prior to demolition &
rehabilitation. This allows the property owners to write off these items
opposed to capitalizing the assets. This can generate substantial tax