Cost Segregation and Fixed Asset Studies

For those who own a building or plan to construct one, a cost segregation study offers an opportunity to uncover a tax reduction windfall. Simply speaking, when company owners purchase or construct buildings, the associated costs are allocated between two categories: land and building. The Tax Solutions Group can conduct an analysis that allows us to segregate and reclassify up to 50 percent of your building costs into personal property items that have much shorter depreciable lives than the 39-year life currently assigned to non-residential real property. And because these changes rarely require amended returns, this change, and the resulting tax benefit, is almost immediate in the way it affects your company and cash flow situation.