Cost Segregation:

An IRS approved cash flow improvement strategy used to reduce federal and state income taxes by maximizing depreciation deductions.

Cost segregation allows an immediate cash flow increase by maximizing the depreciation of select assets in and around your building. Cost segregation studies are an engineering-based approach to identifying personal property and land improvements that can be reclassified into a much shorter depreciation class than the building itself.

Benefits of a cost segregation study from CRS:

  • Reduce your federal and state income taxes for up to 15 years
  • Increase your cash flow and ROI with an accelerated deprecation schedule
  • Identify opportunities for look-back studies on properties owned more than 10 years without amending tax returns

Whether you buy, build, or already own a commercial building, a cost segregation study from CRS can save you significant money on your taxes. Per IRS requirements, the structural part of a building (example: foundation, walls, steps, roof) is depreciated at a rate of 29.5/39 years, which your accountant can successfully do on your tax returns. At CRS, we employ an engineering-based approach to identifying the personal property in your building that can be depreciated at over 5 or 7 years and land improvements around your building that can be depreciated over 15 years.

Assets Typically Reclassified during a Cost Segregation Study

5/7 Year Depreciation

  • Decorative Wall Coverings
  • Carpet & Wood/Laminate Flooring
  • Decorative Millwork
  • Accent Lighting
  • Electrical Circuits Dedicated to Equipment

15 Year Depreciation

  • Sidewalks
  • Site Lighting
  • Underground Storm Drainage
  • Fences
  • Retaining Walls

Call CRS to explore the possibilities of the tax savings available to you though a cost segregation study. We will provide a free, no obligation model of benefits that specifically outlines how much you can save. Call Beth Burke at 732-548-3855 ext. 109 to get the process started and have your proposal within 24-48 hours.