Cost Segregation

What is Cost Segregation?

A cost segregation study can deliver increased cash flow with the accelerated depreciation of real estate assets. The objective of a cost segregation study is to maximize available depreciation benefits by segregating and documenting the cost of all short life property. ​

CTI_Cost-Seg-Graphic

Eligible Assets

 The objective of cost segregation analysis is to help maximize available depreciation benefits by segregating and documenting the cost of all short life property. ​

Building Components

  • Cabinets
  • Millwork
  • Decorative lighting
  • Carpet
  • Communication/data equip
  • Specialty plumbing
  • Window treatments

Site Work

  • Landscaping
  • Irrigation
  • Parking lot striping
  • Exterior sign structures
  • Sidewalks & curbs
  • Security lighting poles
  • Equipment enclosure

Building Structure

  • Roofing
  • Escalators
  • HVAC
  • Exterior façade
  • Electrical
  • Plumbing
  • Fire escapes

How Cost Segregation Can Increase Cash Flow

Hotel

  • $11,000,000 Purchase Price
  • $3,348,097 Add’l Depreciation
  • $1,238,796 Resulting Cash Flow

Warehouse

  • $19,332,414 Purchase Price
  • $2,097,840 Add’l Depreciation
  • $830,745 Resulting Cash Flow
apartment

Apartment

  • $7,243,200 Purchase Price
  • $1,512,158 Add’l Depreciation
  • $598,814 Resulting Cash Flow

Why CTI for Cost Segregation

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Calculation Complexity

Cost segregation studies bring inherent complexities that can be further complicated by fluid legislative acts, court decisions, and service rulings, thus clouding approach and execution. A seasoned tax professional can navigate this tedious terrain.

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Accuracy Assurance

The IRS holds strict standards for a study’s methodology, documentation, depth, and format. Better to have a professional who is well-versed in cost segregation services to ensure accuracy and avoid time-consuming and costly mistakes.

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Optimize Tax Savings

Your goal is to maximize your depreciation potential and cash flow. You never know what opportunities you may miss or what mistakes might cost you if left to your own devices.

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45L Energy Tax Credits

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The expertise you need to properly leverage lucrative tax credits and incentives.

Reach out to a tax consultant to learn how CTI powers your business for success.