Warner Robinson offers its clients extensive expertise in preparing Cost Segregation Studies and supporting documentation. A Cost Segregation study involves identifying, categorizing and reclassifying property into different depreciable lives (typically shorter tax lives) resulting in increased cash flow by lowering your company’s current taxable income.
In addition to identifying items such as furniture, fixtures, and equipment (FF&E) that are depreciated over 5 or 7 years for tax purposes, a cost segregation study also reviews construction costs in constructing a new building for example where such costs are usually depreciated over 27 ½ or 39 years. The primary goal of a cost segregation study is to identify all construction-related costs that can be depreciated over 5, 7 and 15 years.
Benefits of Conducting a Cost Segregation Study:
- Increased cash flow through accelerated depreciation deductions
- Can reduce both income and real estate property taxes
- Identify previously misclassified assets and claim the correct depreciation class life
- The study results in sufficient documentation to comply with IRS requirements and typical documentation requests from field agents
Contact us today to learn more about how we can help you identify substantial state and federal tax savings through a Cost Segregation analysis.
