At Cook Martin Poulson, we don’t just get your taxes done, we actively work to minimize your tax bill. One of the strategies we use for commercial and residential properties is cost segregation studies.
Cook Martin Poulson performed a cost segregation study on our manufacturing facility and saved us over a hundred thousand dollars in tax.
Cost segregation is the IRS-approved method of reclassifying components and improvements of your commercial building from real property to personal property. These studies allow the assets to be depreciated over a 5, 7, or 15-year life instead of the traditional 27.5 or 39-year life. This results in a reduction of your current taxable income and, consequently, an increase in your current cash flow.
Cost segregation studies are a highly-specialized process that includes an engineering-based breakdown of the components of a property. We partner with highly skilled engineers and architects to conduct the studies and complete the report, that is then filed with the IRS. A CMP, we work hard to educate our clients on the benefits of cost segregation studies.
We regularly offer our clients and the general public classes and informational blog posts related to cost segregation studies.
What types of buildings are eligible?
- Commercial buildings of any kind constructed or purchased since 1987
- Apartment Buildings
- New or Existing Buildings
- Buildings purchased or constructed since 1987 are eligible for “catch up” adjustments
- Tenant leasehold improvements
What are the benefits of a cost segregation study?
- Reduces income taxes
- Generates an immediate increase in cash flow through accelerated depreciation deductions
- Provides opportunity to claim “catch-up” depreciation on previously misclassified assets
- Provides an independent third-party analysis that will stand up in an IRS review
Do you Qualify for a Cost Segregation Study?
Contact the professionals at CMP to help you determine if a cost segregation study is right for you.