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. This allows for segregated depreciation for personal property and site improvements rather than depreciating the entire property as real property. This allows for a greater cash flow from depreciation in 5 to 15 years rather than a constant depreciation over 27 to 39 years.

As you can see, from Cost Segregation there is a greater return in the upcoming years where 15-25% of total depreciation is gained within the first 5-7 years

Any commercial building placed in service since 1987 qualifies for this tax treatment. This means buildings that were acquired or newly constructed buildings. Existing buildings that were acquired or built in prior years can still receive a life-to-date deduction or “catch-up” without filing amended tax returns.

Everstandard Valuations Inc. Cost Segregation can provide your client with a detailed, engineer-based Cost Segregation Study using an IRS preferred method completed by an experienced construction engineer. Our specialists have been providing cost segregation studies for our clients for many years (and have experience in major firms such as 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.

The fees are based on the complexity of the building, but the fees are usually a fraction of the savings a client would experience in the first year. We can provide a client with an estimate of expected tax savings prior to committing to a study. If you are interested in recieving a quote please contact us with our mailing form