A Cost Segregation Study identifies and reclassifies property assets to shorten the depreciation time and reduce the associated tax burdens. Our goal in preparing a Cost Segregation Study is to identify building costs that have been traditionally depreciated over the standard 27.5 or 39-year life, and then re-allocate those assets to more accurate live spans of 5, 7, or 15 years.
A study typically allows for much greater depreciation expense in the earlier years of ownership, resulting in larger tax benefits to both businesses and individuals who own the real estate.
At Hall & Company, our engineers have years of extensive education and experience in this highly specialized area. We are able to offer studies for all types of real estate (commercial, residential, industrial, and manufacturing) whether the property is new or has been owned for several years. When applicable, we file the necessary tax forms to allow for catch-up depreciation in the current tax year.
Call us for a no-cost estimate of the tax saving for you or your business.