Cost segregation is a means of increasing cash flow by speeding up depreciation of deductions of your commercial property.  A cost segregation study allows commercial property owners to legally write off their commercial properties in a much shorter time frame. This process has been developed by the I.R.S. to help commercial property owners.

Example: A $2,000,000 office building will receive approximately $50,000 of depreciation a year using standard depreciation methods. When cost segregation is applied, that same building could receive as much as $110,000 in additional depreciation the first year and over $652,000 in additional depreciation in total over the next five years.

Cost segregation studies are one of the most valuable tax strategies available to owners of commercial real estate today. The IRS requires that engineering-based cost segregation studies be performed in order to realize the maximum depreciation benefits. Engineering-based cost segregation studies provide more precisely segregated property information, giving CPA's the information and detailed supporting documentation they need to meet with strict IRS regulations and requirements. Virtually every taxpayer who owns, constructs, renovates, or acquires a commercial real estate structure stands to benefit from a cost segregation study.