Benefits of a Cost Segregation Study
- Increased cash flow through tax benefits achieved from accelerated depreciation.
- Increased net present value of tax savings achieved from accelerated depreciation.
- Independent third-party analysis that will withstand Internal Revenue Service examination.
Example: A client purchased a professional building in 2007, at a total improvements value of $5,250,500 (excluding land). The client did not allocate any of their improvements into shorter depreciable tax lives and treated the entire $5,250,500 building as 39-year property.
The following charts shows the actual financial benefits derived from a Cost Segregation study completed in 2008.
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