Cost Segregation offers certain real property owners accelerated depreciation benefits beyond that of traditional 39 year depreciation. Specifically, it allows for owners of property to allocate certain improvement costs incurred in new construction (or acquisition of existing property) to 5, 7 and 15 year depreciation rates. What this spells out is a financial efficiency that would not occur but for this method. If correctly applied, Cost Segregation will reduce income tax in the initial years of service, thereby increasing cash flow for operations and enabling cost recovery to occur in early years.
Multistate Tax Resources, LLC can help you decide if Cost Segregation is right for you. Our firm has the experience to assist you in making the correct decision and showing you how it may benefit your situation. Once determined, our firm can direct you though the process of finding the proper engineer capable of performing a Cost Segregation study, work with and obtain the correct information to achieve our goal. We have successfully aided in completing a substantial number of Cost Segregation studies for our clients by and through a number of engineers across the county. Let us help you decide if it is the right choice for you!