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Cost Segregation
Did you know we offer Cost Segregation to our
clients?
What is Cost Segregation? Cost Segregation is a commonly used strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.
What are the Benefits of Cost Segregation?
Many business owners are surprised to learn of the compelling tax savings a cost segregation study offers. Below is a list of three of the most prominent benefits.
Cash Flow
Generates immediate increase in cash flow through accelerated depreciation tax deductions
Write Off
Quantifies property’s major components and leasehold improvements so they can be written off when replaced or renovated
Review
Provides an independent third-party analysis that will withstand IRS review.
What is Involved in a Cost Segregation Study?
A quality Cost Segregation study evaluates all information, including available records,
inspections, and interviews, and presents the findings in a clear, well-documented format.
Our process for conducting a detailed Cost Segregation includes a review of any available cost detail for the property, a review of any available blue prints and a physical inspection of the property.
If none of this information is available, a Cost Segregation study can still be performed by
estimating component values on site.
When should a Cost Segregation study be conducted?
A Cost Segregation study can be completed any time after the purchase, remodel or construction of a property.
However, the optimum time for a study for new owners is during the year a building is constructed, purchased or remodeled.
For investors who are in the planning phases of construction or remodeling, the best time to consider a Cost Segregation study is before the infrastructure of the building is set. KBKG offers a free preliminary analysis that can help determine the right timing and strategy for any investor.
Contact us today to get started!
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