Walter & Shuffain - Certified Public Accountants & Business Advisors

Cost Segregation Studies

Cost segregation is a strategic tax savings tool that allows entities and individuals who have constructed, purchased, expanded, or remodeled real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes. A cost segregation study (CSS) can potentially save property owners thousands of dollars. It can also be applied to current year tenant build-outs.

Cost segregation doesn't only apply to new buildings. Any property constructed after 1986 can be the subject of a CSS and any missed depreciation from prior years can be realized in the current year.

At W&S, our CSS professionals will work closely with our tax experts to perform your CSS, ensuring a reduced tax burden, increased cash flow and the highest possible return on your real estate asset.

Our cost segregation services include:

  • An examination of architectural/engineering drawings and specifications to determine assets available for accelerated cost recovery
  • An on-site visit and inspection of the property
  • Determination of the purpose and function of the property and related equipment
  • Analysis of the capitalized cost, including the final application for payment, change orders, architectural fees, owner-incurred costs, and other submitted costs
  • Allocation of indirect costs to project assets
  • Classification of the final project costs
  • Research court cases and revenue rulings, state sales/use tax law and related cases

A cost segregation study may result in:

  • Maximized tax deferrals through accelerated depreciation deductions
  • Reduced real estate taxes
  • The potential to substantially reduce sales/use tax costs
  • Increased cash flow

Contact us for more information about W&S’s cost segregation studies services.