Cost Segregation Studies

Improve your return on investment.

As a business or property owner, depreciation of your assets can play a critical role in your budget. Cost segregation is a legal way to write-off depreciation for property investments, shorten the amount of time your assets are depreciated, and receive the cash you need.

IRS rulings and procedures, as well as court cases, make it possible to realize significant tax savings through accelerating the depreciation of real property costs. Without a cost segregation study, these costs are generally depreciated over as much as 39 years, but at B&R cost segregation studies may provide you with the opportunity to accelerate the depreciable lives of parts of your buildings to as little as five, seven and 15 years.

Benefits of Cost Segregation Studies

The benefits of a cost segregation study come from the acceleration of tax deductions and the cash flow generated by those deductions. Through the time-value of money, a tax deduction today is worth significantly more than it will be in the future.

Greater Tax Savings - Greater Cash Flow

Cost segregation studies are not limited to property currently being constructed or purchased. Any building built or acquired in 1987 or later may qualify for the valuable tax savings a study can yield. If your property was previously depreciated over a longer life, you may be able to “catch up” the additional depreciation expense identified by a cost segregation study immediately. Cost segregation studies have helped our clients save taxes and added thousands to their bottom lines.

On the average, for every $100,000 of 39-year property reclassified to 7-year property, the present value of the net cash flow associated with the acceleration of depreciation is around $20,000.

B&R can help you realize significant depreciation deductions from:

New buildings and facilities now under construction

Buildings placed in service as far back as 1987

Existing buildings undergoing renovation, remodeling, restoration or expansion after January 1, 1987

Leasehold improvements to offices and facilities

Acquisitions or investments in real estate properties

Contact us at info@cpabr.com or 800-843-1120 for more information, and see if your business qualifies for a cost segregation study today.

 

211 House Avenue Camp Hill, PA 17011 717-761-7210
141 West High Street Carlisle, PA 17013-2913 717-249-3414
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1600 University Drive State College, PA 16801-6974 814-234-6919