Cost segregation reclassifies tangible assets from long-life real property to appropriate personal property and site improvements. Properly classifying these assets will optimize tax depreciation deductions which results in substantial cash flow benefits. If you have acquired business property through purchase, new construction, renovation, or leasehold improvements, you may benefit from cost segregation.
Whether our team is brought in at the beginning of a construction project, at completion/purchase of a new building, or years later to perform a retroactive study, we follow a proven process to optimize results. Cost segregation benefits all types of industries and incredibly diverse property types.
Many property owners can identify some nonstructural items that qualify for accelerated depreciation. The greatest savings comes from identifying the mechanical, electrical and plumbing assets that are not as easily discernible. This is where opportunities are often missed, but the rewards of a proper study can be significant.
Cost segregation also helps with “unit of property” determinations under the new tangible property regulations. These new rules allow taxpayers to properly dispose of property which requires knowing the basis of the former asset or partial asset that is subsequently replaced, adapted, or improved.
When you work with Advanta, you gain the advantage of a team that is highly experienced in the technical nuances of cost segregation and deeply interested in the success of your project and your business.