Cost Segregation

Tapping A Little-Used Opportunity To Minimize Taxes

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.

At DeJoy, Knauf & Blood, we use our knowledge of IRS regulations, rulings and interpretations to determine whether a cost-segregation study would benefit your business. Possible opportunities include:

  • New buildings under construction
  • Buildings undergoing renovation, remodeling, restoration or expansion
  • Purchase of existing properties
  • Office and facility leasehold improvements and build-outs
  • Post-1986 real estate construction, building acquisitions or improvements where no cost segregation study was performed for the year of purchase.

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.

Cost Segregation Team

Partners

thumb_Mark Blood

Mark S. Blood, CPA

Partner
Director, Tax Services

thumb_Mike Cooke

Michael L. Cooke, CPA

Partner
Tax Services

thumb_Mollene Benison

Mollene B. Benison, CPA

Partner
Financial Assurance Services

Senior Managers

thumb_Steve Wuest - website

Steve Wuest, CPA

Senior Manager
Tax Services

Managers

thumb_Morgan Hopkins

Morgan Hopkins, CPA

Manager
Tax Services