Cost Segregation

Optimize Depreciation to Lighten Your Tax Load on Real Estate Investments

As a business owner, optimizing tax savings is crucial for cash flow and business growth. Often overlooked, buildings are long-term assets that offer tax benefits. Whether constructing, purchasing, remodeling, or expanding real estate, accelerating building depreciation can lead to significant tax savings.

Cost Segregation Studies (CSS) reclassify costs from longer-life assets to shorter-life assets. Typically, costs are depreciated over 39 years (non-residential) or 27.5 years (residential). CSS identifies items eligible for shorter depreciation periods, such as tangible personal property (3 to 7 years) or land improvements (15 years).

CSS applies to building acquisitions, renovations, expansions, and new construction. Even years later, CSS allows retroactive savings. By separating personal property from real property, owners can maximize tax benefits and depreciation deductions. Our team works with you to provide an in-depth analysis of the costs incurred to acquire, build, renovate, or otherwise expand a real estate holding positioning you to:

Accelerate Depreciation Deductions

Minimize Tax Burdens

Enhance After-Tax Cash Flow

How We Deliver

While fully versed in federal, state, and local tax codes, SC&H’s Cost Segregation professionals bring 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 $6 billion.

Our 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 becomes 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.

Tax 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.

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