Traditionally real estate owners depreciate an entire asset over 27.5 years (residential) or 39 years (commercial). Cost segregation allows you to take deductions for real property over the 5, 7 or 15 years of its useful life.
At RE Cost Seg, we have a robust team of tax, engineering and finance professionals that will analyze your property and work to maximize your deductions.
Ready to learn if you are a good candidate for cost segregation?
Once you sign the proposal we will hit the ground running gathering information.
Any type of a commercial property placed into service after 1986 qualifies for cost segregation.
We are a dedicated team of Engineering, Tax and Financial professionals that will work together to complete your cost segregation report.
Fees depend on the size and complexity of each engagement. Click here to contact us for a free assessment to determine if your property is a good candidate for a cost segregation study.
The best time to perform a cost segregation study is within the tax year that the building is purchased or construction is completed.
You can have a look-back study done on assets acquired as far back as 1987 and claim the resulting write-offs using the 3115 Automatic Change without amending prior-year tax returns.
There are diminishing returns to performing a study the longer you own and depreciate a property. Contact us to determine if your property is a fit for a cost segregation study.
If you are planning to sell the property in a taxable transaction a cost segregation study may not make sense because of recapture. We generally recommend you hold a property for at least 3-5 years.
However, if you are planning to enter into a like-kind exchange (non-taxable transfer of your property for another property) you will not have depreciation recapture issues until you sell the replacement property.
Any investment property is eligible for a cost segregation study and the resulting tax benefits. You do not need a professional designation to be eligible.
No, there is no need to file an amended return. Your accountant will file Form 3115 Automatic Change without amending prior-year tax returns.
It typically takes 30-45 days to complete the study and receive the final report. Timing depends on how quickly we receive the requested documents.