Cost Segregation

Riney Hancock CPAs offers a comprehensive cost segregation service to maximize your tax savings and increase the cash flow on your current, future or past real estate investment. Our professionals are up-to-date on the ever-changing provisions of the IRS regarding depreciating personal property. The cost of a building includes many assets that qualify for much shorter tax lives than the building taken as a whole.

Increased Cash Flow

Valuable tax savings in your building are often overlooked. A cost segregation study can identify the shorter-lived assets making up your building cost so that depreciation deductions can be claimed sooner to reduce taxes and increase cash flow. Our cost segregation professionals can carve assets that are normally included in a building’s construction or acquisition cost. For example, every $1 million that is segregated from the general building cost can result in additional deductions of approximately $570,000 over the first seven years, and when all future cash flows are considered, the net present value of these deductions is about $170,000.

Most Real Estate Qualifies

Studies can be performed on most real estate and usually prove beneficial. If the property will be held for three years or longer (or exchanged for another property) then the use of a cost segregation study should be considered.

Assets Previously Placed In Service

Cost segregation studies can be performed on assets that were placed in service during a prior tax year. Studies frequently result in sizable deductions to adjust for previously understated depreciation deductions.

Contact Us Today

Our professionals will work with you to properly generate and document a cost segregation study. For more details and to find out how cost segregation can benefit you, we invite you to contact us today.