Cost Segregation Studies

A Cost Segregation Study presents an opportunity for improving cash flow management through tax deferrals.

Our real estate advisors analyze costs of new construction, building acquisitions or improvements to identify non-structural building costs that can be depreciated over much shorter recovery periods than those required for real estate. By depreciating these costs over the early years of a property’s life, taxable income is significantly reduced and cash flow preciously needed for taxes can be redirected to investment opportunities or current operating needs.

The benefits of a Cost Segregation Study apply to both current acquisitions and improvements, as well as those made in previous years.

Our experts are highly knowledgeable of tax law and will evaluate the overall benefit to both the operating entity and individual investors when implementing a Cost Segregation Study as a tax deferral strategy.

Some of the facilities that could benefit from a Cost Segregation Study include:

  • Manufacturing plants
  • Medical practices
  • Grocery stores
  • Warehouses
  • Retail stores
  • Restaurants
  • Apartment complexes
  • Wineries
  • Office suites