Cost Segregation is an IRS recognized tax savings strategy whereby we identify specific components of a building that can be treated as personal property or site improvements for Federal tax purposes rather than real property. The cost for the personal property depreciates over 5 or 7 years and site improvements depreciate over 15 years rather than the 39 years or 27.5 years depreciation for real property. These compressed depreciation lives create $30,000 to $200,000 in Federal tax benefits for every $1,000,000 our clients spend on buildings or Tenant Improvements. If our clients spend at least $1,000,000 on the acquisition or construction of a building or $500,000 on Tenant Improvement it is usually worthwhile to do a cost segregation analysis.

Who can perform this study? Everstandard Valuations Inc. Cost Segregation can provide your client with a detailed, engineer-based Cost Segregation Study, the IRS preferred method, completed by an experienced construction engineer. Our specialists have been providing cost segregation studies for our clients for many years (with KPMG, PWC and Marshall & Stevens). We have extensive experience in many property types such as office, industrial, apartment, manufacturing, R&D, hotels, retail centers, hospitals, medical facilities, and special purpose assets.