How can Cost Segregation Study LLC help you?

At Cost Segregation Study LLC, our approach is goal-oriented.  We create value for our clients, and do not interfere with current business relationships.  We are willing to work with your existing accountant to help you r company realize the value our service can provide.

Our construction engineering and tax specialists examine real estate holdings to determine which costs can be segregated and depreciated over a much shorter recovery period, rather than over a 39-year depreciable life.

  • Our experts are trained in this technical are of taxation and engineering-based approach of constructing your facility.
  • Our consultants have researched all the highly technical court cases, IRS rulings and procedures as they relate to cost segregation.
  • Our professionals can read and interpret blueprints and specifications.
  • Our team has performed thousands of studies ranging from warehouses to highly automated processing plants.
  • We build strategic alliances with CPA firms with engineering support to complete outsourcing.
  • We have experience in dealing with IRS audits as it pertains to asset allocations.

           We've saved millions of dollars
                               for businesses like yours!

Retail Shopping Centers | Malls | Outlets | Cost Segregation Studies

If your clients acquire real estate valued at $1 million or more, they may be eligible for substantial federal and state tax savings through a professionally conducted Cost Segregation Study. A cost segregation study involves certain assets within the transaction that may qualify for accelerated depreciation. The results of accelerated depreciation are larger tax deductions over a shorter period, meaning increased cash flow and lower capital costs.

Retailers engage us to assign the proper depreciation life to their real estate assets to ensure their capital costs are recovered as soon as possible. Even purchased facilities may have substantial assets qualifying for accelerated depreciation that can lower taxable income as some of our recent studies show:

Shopping Center Complex:
A professionally completed cost segregation study for a similar shopping center complex valued at $14.5 million resulted in an additional $1.45 million in depreciation over the first four years of service. The income taxes deferred over the same time period amounted to $610,000 (using a 39% combined federal and state income tax rates.)

Virginia Shopping Mall:
A 20-shop strip-mall anchored by a supermarket was purchased for $2,000,000 in 2000. We located 108 qualified assets: $242,000 in 15-Year and $221,000 in 5-Year. Under the recently enacted Revenue Procedure 2002-19, the first year's additional depreciation was $161,968 with a tax savings of $72,886.

California Mini-mall:
A new supermarket with 7 shops built for $3,700,000. We located 157 assets: $888,000 in 15-year and $898,000 in 5-Year. The first year's depreciation is $273,075 with a tax savings of $122,884.

Cost segregation studies can be performed on current, as well as on past, real estate transactions. Contact a Cost Segregation professional for a free cost benefit analysis on all of your real estate transactions, past or present.