cost segregation for construction

Are you constructing a new building, expanding an existing one, purchasing real estate, renovating an old facility or making leasehold improvements? If so, Cowan, Gunteski & Co., P.A. can help you significantly increase your cash flow and reduce your taxes.

What is a Cost Segregation Study?

The American Society of Cost Segregation Professionals defines cost segregation as "the process of identifying property components that are considered ‘personal property’ or ‘land improvements’ under the federal tax code." The process is typically nonintrusive and involves an assessment of architectural and engineering factors related to your property.

The Financial Benefits

A cost segregation study can help you break down construction and acquisition costs and allocate them to shorter depreciation lives. Typically, the cost of commercial real estate is depreciated over 39 years for tax purposes. However, with a cost segregation study, these costs can be shifted to five, seven, or 15 year depreciation lives.

This reduces your current income obligations and decreases your taxes, freeing up resources to improve your cash flow.

Don’t miss out on a critical opportunity to reduce taxes and increase cash flow. If you are constructing, modifying or altering your facility or real estate, reach out to us through the Contacts area to your left or by visiting our Contact Us section.