Nelson Engineering Company

Cost Segregation Studies

A Cost Segregation Study is an in-depth study of your new or existing property that helps you optimally classify your investment and generate cash flow savings. Nelson Engineering Company provides cost segregation services to diverse companies throughout the United States. We have developed a sound process that generates a detailed Cost Segregation report at a minimal cost to our customer. Our experienced engineers deliver a product that is far superior to similar services offered by traditional companies in the business.

What is a Cost Segregation Study?

Cost Segregation is a strategic tax savings’ tool that allows companies and individuals who have constructed, purchased, expanded, or remodeled real estate to increase their cash flow by accelerating depreciation deductions and deferring their federal and state income taxes.

The goal of a Cost Segregation study is to identify, segregate, and reclassify project-related costs that are currently classified as real property to shorter depreciable tax lives for federal and state income tax purposes. Recent IRS rulings and procedures have allowed taxpayers to change accounting methods to take advantage of these previously understated depreciation expenses--back to 1987. This is done without amending tax returns.

Primary benefits of a Cost Segregation Study

Increased current cash flow through accelerated tax depreciation of structure related costs.
Permanent net present value savings on tax depreciation that may be significant.
Independent third-party analysis that will withstand Internal Revenue Service scrutiny.

Average Acceleration Percentages

Building Type	Average Cost re-allocations to short-term Accelerated Depreciation
Apartment Buildings	20 to 45 %
Retail Stores	20 to 40 %
Restaurants	20 to 45 %
Office Buildings	10 to 25 %
Manufacturing Facilities	20 to 60 %
Research and Development	30 to 60 %
Wineries	20 to 45 %
Grocery Stores	25 to 45 %
Hotels	25 to 45 %
Warehousing	10 to 25 %

Other projects that qualify are:

	Shopping malls		Healthcare facilities
	Airports		Medical Centers
	Sports facilities		Industrial Buildings
	Golf courses & ranges		Distribution centers
	Resorts		And more

Interested?

If you would like more information on Cost Segregation Studies or would like to receive a free estimate of the benefits a study can offer your specific property, please click here admin@nelsonengrco.com and one of our engineers will be glad to help you.