Cost Segregation Services

The use of accelerated depreciation of costs associated with the construction, renovation or purchase of a new building or real estate is an often-overlooked tax-savings opportunity.

By identifying assets that qualify for shorter depreciable lives, you are able to accelerate tax depreciation and lower your current income tax. Hall & Company’s dedicated cost segregation consultants can help ensure you maximize your investment.

Through a cost segregation study, an asset’s depreciable life is shortened where appropriate. This in turn accelerates expense and decreases taxable income. As a taxpayer, you pay less tax during the early stages of a property’s life. 

Under certain circumstances, the assets identified may also qualify for the special 30 percent bonus depreciation allowed by the Job Creation and Worker Assistance Act of 2002. 

Create an audit trail.

A properly documented third-party cost segregation study can help resolve IRS inquiries at the agent level, while improper documentation of cost and asset classification can lead to an unfavorable audit adjustment. 

Reduce real estate tax liabilities. 

Real estate taxes may be reduced by separating tangible personal property from the non-residential real property being constructed. Even if a jurisdiction imposes a personal property tax on business property, tax savings may be realized due to substantially shorter personal property lives and faster devaluation of assets. 

Specific sales tax exemptions.

Substantial sales tax savings may be achieved by classifying tangible personal property as industrial machinery and equipment. Many states provide a sales tax exemption to a company purchasing qualifying industrial machinery and equipment. Sales or use tax exemptions represent immediate and permanent cash savings. 

Find benefits for your properties.

Cost segregation studies benefit a wide range of properties. If your company is constructing or planning to construct or substantially remodel a new building or facility, a cost segregation study is a must. 

The benefits do not stop with new construction. If you have a post-1986 real estate construction, building acquisition or improvement, there are opportunities to minimize your tax. Assets within existing property constructed anytime, but placed in service after 1986, can also be segregated. Office leasehold improvements and “fit outs” also qualify contain tax-saving assets.

Get the most out of your project.

Be certain you are obtaining the maximum cost recovery deduction allowed by law. Our costs segregation professionals have performed studies on many types of buildings and real estate ranging from $500,000 to over $4 million.