For owners of business real estate, the cost segregation method — which involves separating personal property assets from real property assets for the purposes of acceleration depreciation — offers potential tax savings, cash-flow improvement and an enhanced return on investment.
Using an engineering-based approach, a cost-segregation study identifies assets within a building that can be reclassified into a much shorter depreciation class than the building itself. Buildings with the greatest potential for tax benefits include hotels, auto dealerships, hospitals, medical centers, office buildings, mobile-home parks, restaurants, recreation and sports facilities, shopping centers and strip malls, long-term-care facilities, and industrial and manufacturing facilities.
To prepare and support such a study, TeamDKB collaborates with an architectural/engineering firm to inspect the property. Using IRS-approved engineering and cost-estimating procedures, we work together to generate a highly technical study that supports the optimization of tax depreciation deductions, enhancing cash flow and improving your bottom line.