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.