Cost Segregation
Cost segregation is a complex engineering analysis to separate real and personal property. The primary benefit is to accelerate depreciation on personal property to shield Federal tax income and save taxes.
Other benefits are shown below.
Assets Included
- Building
- New or Used
- Land Improvements
- Personal Property
- Leasehold Improvements
Purpose of Analysis
- 1031 Property Exchange
- Insurance Value
- Accelerate Federal Tax Depreciation
- IRS Support
- Capital Gain
- Property Tax
Downloadable Documents
Cost Segregation - Hidden Cash
Client Example
Cost Segregation
| Client: | Buyer of major regional shopping center. |
| Issues: | Value assigned to land. One set of mechanical drawings not available. |
| Result: | For land, we performed a restricted appraisal to value raw land. Comparable approach for similar acreage provided supportable minimum land value. For cost segregation, we created a detailed cost model based on other drawings and site inspection. Our software created appropriate direct and indirect costing for each building and tenant. |