THE VALUE OF A COST SEGREGATION STUDY

Cost segregation is for commercial properties and residential investment property valued at $30,000 (not including the land value) or greater. It is the process of identifying, segregating, and reclassifying the building basis and the land improvements of the property into shorter depreciable tax lives. The core benefit of a cost segregation study is the additional cash flow that is created by reducing the owner’s current taxable income. For all practical intents, a cost segregation study can be viewed as a long-term no-interest loan from the federal government. What’s more, the cost of the study is a deductible business expense.

 

US Tax Advisors Group, Inc. is an engineering firm with extensive construction expertise and in-depth knowledge of the tax laws governing cost segregation. As cost segregation specialists, our focus is on maximizing the legitimate benefits available to you, the owner. We have been trained to apply the proper analysis and implementation of a cost segregation study for accepted IRS protocols of cost segregation. A study performed by a team of engineers and construction specialists who also understand the relevant tax law and who have conducted thousands of studies is more likely to be cost-effective, attract less attention, and be more easily defended should an audit occur.

 

Identifying all of the building items that can legitimately be accelerated requires specialized construction and engineering expertise combined with in-depth knowledge of the tax laws, IRS rules and court cases governing cost segregation studies. This is a field where experience and expertise count.

Your Building. Your Tax Savings. Your Increased Cash Flow. Our Specialty.

The professional and dedicated staff at USTAGI is committed to working with you and your tax advisors to provide you with the finest service and studies available for a wide variety of buildings nationwide. Our experienced team allow USTAGI to earn your trust and your business with the best engineering studies, best service and best prices. Any type of building can benefit:

    • Single Family Home

 

    • Manufacturing Facilities

 

    • Retail Stores

 

    • Office Buildings

 

    • Restaurants

 

    • Apartment Buildings

 

  • Warehouses
    • Storage Facilities

 

    • Hotels

 

    • Automotive Repair Shops

 

    • Car Dealerships

 

    • New Construction

 

    • Leasehold Improvements

 

  • And More

USTAGI is recognized nationwide as one of the most experienced engineering firms in the U.S. offer you the service you need, where you need it. With a strong emphasis on reliable engineering studies that meet and exceed the IRS rules in providing everything that our clients and their accountants need, we ensure you receive the finest and highest quality service experience……our clients always come first!

 

Dispositions

As per the Tangible Property Regulations (TPR), the IRS requires all taxpayers to remove or “write-off” disposed of building components that were discarded and disposed of when a building has undergone repairs, maintenance or renovations (improvements). To calculate the remaining basis of building components disposed of, the accountant or building owner needs the value of building components. With USTAGI, as part of our full engineering-based cost segregation studies (not modeling), we value not only the personal property, the 1245 property, but the real property, the 1250 property as well. This gives the building owner all the necessary information needed to correctly “write-off” all disposed of property without paying any additional fees.

Not All Studies are Created Equal

Because there is no bright-line test for determining what items qualify for accelerated depreciation, cost segregation studies can vary widely in approach, methodology, and quality, with corresponding variations in tax savings. A cost segregation study done at 10,000 feet by an accountant with no engineering or construction cost-estimating background might identify a few items, such as carpet or a resurfaced parking lot, that qualify for accelerated depreciation. It is extremely unlikely, however, that this approach will identify more than a small fraction of what an owner is entitled to. More importantly, this methodology may not withstand IRS scrutiny. The IRS audit guidelines clearly state that “a study conducted by a construction engineer is more reliable than one conducted by someone with no engineering or construction background.”