Engineering-based cost segregation studies permit commercial real estate owners to reclassify real property for depreciation purposes and reclassify it as more rapidly depreciating personal property. This reclassification results in significant cash flow benefits in both present and future years through considerably shorter depreciation tax life and accelerated depreciation methods. Note, these studies are not limited to new buildings or new renovations.
Over 75% of our projects are on older properties using the “catch up” method which can produce significant results. Although some building owners and CPAs have substantial experience with Cost Segregation, most do not. Countless building owners are missing out on this powerful tax savings strategy. To facilitate this work we do an initial consultation and develop a feasibility report to determine the cash flow and net present value (NPV) benefit potential. Our professionals evaluate your current tax status and your future business plans along with your CPA to determine if a full study would be of benefit.
Additionally, outside of income taxes, the single largest recurring charge for commercial property owners is property taxes. In most states, owners are required to pay taxes on both their real estate as well as their personal property. These charges are often an immense expense and a constant hit to the bottom line. To ensure you are not being overcharged on your property taxes, a specialist with extensive market experience in valuation, tax, and law is needed.
Our experienced team of professionals in mitigation, valuation, assessments, and law will work on your case to identify any potential opportunity for refunds and/or reductions in your current property taxes. We perform all the work on your behalf until savings are captured, including partaking in hearings and filing necessary paperwork. We act as an extension of your company toward the governing property tax bodies.