Cost Segregation - Cost Segregation Analysis

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Cost segregation consists of a process whereby building components that can be depreciated over a relatively short time (5 to 15 years) are identified and reclassified so that accelerated depreciation can be calculated and claimed by the building owner, resulting in the significant deferral of state and federal income taxes and greater cash flow. Generally, apartment buildings are depreciated straight-line over 27.5 years while commercial buildings are depreciated straight - line over 39 years. Unless the owner segregates and re-classifies the building components, he or she will pay substantially higher state and federal taxes in the early years of ownership.

The ideal candidate for cost segregation and tax deferral includes the owners of income producing properties acquired in the last 10 years. Recently renovated income producing properties may also show additional tax benefits.

If you own an income producing property contact us. We will:

  1. Run a complimentary property analysis;
  2. Review your estimated tax savings with you;
  3. Provide you with a proposal for services; and
  4. If agreeable, prepare a well-documented, Engineering - Based Cost Segregation Analysis for you and your tax preparer.


Types of properties that qualify include:

Apartment Buildings
Assisted Living Buildings
Retail Properties
Restaurant Buildings
Auto Dealerships and Repair Shops
Storage Facilities
Rental Homes

Bank Branches
Office Buildings
Industrial Buildings
Airport Hangars

If you want to increase your cash flow by substantially deferring federal and state income taxes, please request a proposal. There is no cost or obligation. We have staff that speaks English and Chinese.



Example of Cost Segregation and Tax Savings

Frequently Asked Questions

Glossary of Cost Segregation Analysis Terms

Glossary of Accounting Terms