Cost Segregation Studies

Cost Segregation is a process that reclassifies building components and other fixed asset types to accelerate depreciation deductions for federal income and property tax savings. Buildings and other fixed assets held for business use are eligible for depreciation and could benefit from a Cost Segregation Service.

Our Cost Segregation services enable owners of commercial real estate to increase their cash flow and save significantly on their taxes. The purpose of our Cost Segregation service is to accelerate depreciation by identifying items that should be properly classified as depreciable fixed assets (building and personal property components) and non-depreciable fixed asset (land component). Our professionals will identify the various components of the building and assign these components their rightful life and portion of the overall cost basis.

Our goal in a Cost Segregation study is to identify all constructed related cost that can be depreciated over a shorter-life. The typical depreciation for a real property asset is 39 years for commercial and 27.5 years for residential rental property. However, tangible property on the other hand such as business personal property items depreciates much quicker. In other words, it allows owners of real property to take a higher tax deduction now, as opposed to the future; and ultimately increases the client’s business cash flow.

We provide services to owners of newly constructed buildings, newly purchased buildings, existing remodeled, renovated and expanded buildings. Our professionals are experienced in Cost Estimation methods and techniques, and we work closely with other professionals to provide a detailed Cost Segregation Study.

What CompMetrics does?

1.   We conduct a physical inspection of the facility.
2.   We examine the building plans / architectural drawings for asset reclassification
3.   We identify all assets that qualify for accelerated depreciation.
4.   We analyze all cost data
5.   We apply the right depreciation on specific fixed assets or building components for shorter-life.
6.   We identify any applicable Tax Credit and Green Energy incentives for historic and newly constructed or renovated buildings.
7.   We perform retroactive Cost Segregation Study when applicable.

Cost Segregation is a process that reclassifies building components and other fixed asset types to accelerate depreciation deductions for federal income and property tax savings. Buildings and other fixed assets held for business use are eligible for depreciation and could benefit from a Cost Segregation Service.

Our Cost Segregation services enable owners of commercial real estate to increase their cash flow and save significantly on their taxes. The purpose of our Cost Segregation service is to accelerate depreciation by identifying items that should be properly classified as depreciable fixed assets (building and personal property components) and non-depreciable fixed asset (land component). Our professionals will identify the various components of the building and assign these components their rightful life and portion of the overall cost basis.

Our goal in a Cost Segregation study is to identify all constructed related cost that can be depreciated over a shorter-life. The typical depreciation for a real property asset is 39 years for commercial and 27.5 years for residential rental property. However, tangible property on the other hand such as business personal property items depreciates much quicker. In other words, it allows owners of real property to take a higher tax deduction now, as opposed to the future; and ultimately increases the client’s business cash flow.

We provide services to owners of newly constructed buildings, newly purchased buildings, existing remodeled, renovated and expanded buildings. Our professionals are experienced in Cost Estimation methods and techniques, and we work closely with other professionals to provide a detailed Cost Segregation Study.

What CompMetrics does?

1.   We conduct a physical inspection of the facility.
2.   We examine the building plans / architectural drawings for asset reclassification
3.   We identify all assets that qualify for accelerated depreciation.
4.   We analyze all cost data
5.   We apply the right depreciation on specific fixed assets or building components for shorter-life.
6.   We identify any applicable Tax Credit and Green Energy incentives for historic and newly constructed or renovated buildings.
7.   We perform retroactive Cost Segregation Study when applicable.