Cost Segregation

Maximize Your Depreciation and Minimize the Tax Burden of Your Real Estate Investments

Buildings are considered long term assets. Accordingly, their associated depreciation expense is normally recognized over longer periods – from 27 to 39 years.

Cost Segregation Studies (CSS) successfully allow real property owners to reclassify certain costs out of these longer life assets and into shorter life assets. The tax effect is to accelerate deductions into early years, thereby reducing tax liabilities for owners.

Building acquisitions, renovations, expansions, and new construction are all good CSS candidates. CSS can even be prepared years afterwards, allowing a “catch up” of savings. By identifying and separating personal property assets from real property assets, owners can take advantage of substantial tax savings and depreciation deductions associated with fixed assets and related costs.

Proper Cost Classification Advantages

  • Maximize current deductions by way of accelerated depreciation
  • Recognize lower tax burdens
  • Optimize after-tax cash flow

Our Expertise

While fully versed in federal, state, and local tax codes, SC&H Group brings a business centered mindset to each engagement. We have been engaged by developers, owner-occupied properties, and REITs nationwide, and have performed cost segregation and fixed asset review studies on real property assets totaling over $5 billion.

Several of our tax professionals held Tax Director positions at large multinational corporations. This unique mix of experience and knowledge allows your enterprise to leverage every opportunity leading to exceptional results.

Due to our commitment to quality, excellence, and fidelity, SC&H Group enjoys one of the industry’s leading client retention rates. We become a viable part of your team where strategy, planning, and goals are intimately aligned. Our areas of expertise include:

  • Cost Segregation
    • Defer tax liabilities and optimize near term cash flow by separating building components into proper asset classifications and recovery periods.
      • Fixed Assets
        • Correct improper taxation of fixed assets and expedite tax deductions or deferrals. Mitigate non-compliance and IRS audit risk with appropriate fixed asset capitalization.
      • Tangible Property Repair Regulations
        • Develop maximum tax deductions on real and personal property purchases. Timely reviews can unlock deductions from prior years, even those beyond the statute of limitations. Also, improve cash flow related to capital expenditures in the current and future years.

        With SC&H Group, our Tax Advisory professionals offer more than just tax preparation services.

Learn More About Our Tax Practice And What We Can Do For Your Business

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