Cost Segregation is a strategic tax savings opportunity that allows companies who have built, acquired, expanded, or remodeled buildings to increase cash flow by accelerating depreciation deductions and defering federal income taxes. Warner Robinson’s cost segregation and fixed asset services team is made up of highly qualified Engineering & Tax Professionals. Our experience is second to none. Since 1996, our team has successfully performed quality studies nationwide resulting in millions of dollars in tax savings for our clients across a large variety of industries. The Warner Robinson approach to Cost Segregation is:
- Client Service Oriented. We will work to understand your needs and tailor our study around your goals.
- Tax Law Grounded. We will base all results and classifications on the most up-to-date tax law and judicial rulings.
- Engineering Based. We will utilize Engineers that have extensive construction experience and are trained in relevant tax law, judicial rulings and IRS approved methods to conduct the studies.
Cost Segregation Benefits
- May quickly generate increase in cash flow through accelerated depreciation deductions. The average retention of cash flow is $200,000 for every $1M of long term depreciated property that is reclassified.
- Properly establishes required Unit of Property values for your building assets and improvements to take full advantage of the New Regulations on Capitalized Repairs, Improvements and Maintenance costs.
- May allow some taxpayers to claim ‘catch up’ depreciation on previously misclassified assets.
- Provides support for tax accounting and IRS audit purposes.
Steps In WR Cost Segregation Study
A quality cost segregation study evaluates all information including available records, inspections, and inter-views, and presents the findings in a clear, well-documented format. Our process for conducting a detailed Cost Segregation Study includes:
- Review of all cost detail for the properties including: the GC’s application for payment, change orders, construction invoices, appraisals, and depreciation schedules.
- Physical inspection of the facility to best understand its use and condition.
- Review of as built drawings and blueprints (as available) and the performance of quantity take-offs and cost estimates for personal property (as necessary).
- Schedule of all construction costs and estimates of the actual amounts incurred by tax life including allocation of soft costs and reconciliation of total project costs.
- Issue a report that meets the IRS’ “13 Principle Elements of a Quality Cost Segregation Study” and includes audit support.
Warner Robinson is committed to providing high quality engineering-based cost segregation & fixed asset studies. We believe our key strength is in our team’s understanding of the ever changing complexities of taxation coupled with very strong engineering. This unique combination and approach to our studies creates significant tax savings and increased value to our client’s bottom line. Our team of experienced professionals can help your company maximize its bottom line by taking full advantage of these and other strategic tax saving opportunities. The Warner Robinson LLC cost segregation practice is led by Managing Director Cedar Robinson.
Contact us today to learn more about how we can help you identify substantial state and federal tax savings through a Cost Segregation analysis.