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If you answered Yes to any of these questions, you may be in possession of untapped tax benefits. Although not commonly understood, a cost segregation study is a tax strategy that can be incredibly valuable to everyone who owns or is constructing, renovating, or acquiring real estate.
Cost segregation is an engineering-based analysis of assets within a building. It identifies assets that can be reclassified into a shorter depreciation recovery period than the building itself. Applicable to both new construction or existing structures, a cost segregation study can determine proper tax life and depreciation, resulting in increased cash flow.
MarksNelson offers cost segregation study services to help you accelerate depreciation, increase current tax deductions, defer income tax and increase cash flow.
Cost segregation can be applied to various types of real estate: apartments, assisted living/nursing homes, auto dealerships, office buildings, restaurants, manufacturing buildings, hotels, medical buildings, retail space, and others.
MarksNelson can help identify, classify and segregate the personal property components and land improvements of your building, a proven process that combines accounting and engineering to uncover hidden tax benefits.