A cost segregation study is an analysis of the capital expenditures or investment made in a residential or commercial building, such as a manufacturing facility, apartment building, restaurant, medical office, retail store or office building.

Why Conduct a Cost Segregation Study?

Direct benefits of cost segregation studies include:

• Reduce corporate and individual income taxes
• Reduce real estate taxes by shifting value from real property to personal property
• Reduce personal property taxes by accelerating the write-down of personal property
• Increase corporate after tax net income by reducing the corporation’s effective tax rate
• Help provide corporations and investors with increased cash flow
• Help investors maximize the tax credits they can claim
• Provide investors with additional cash to reinvest in new projects
• Allow a corporation or investor to claim "catch-up" depreciation on assets that have been previously misclassified as real property
• Help investors and corporations manage their investments in capitalized assets