Cost Segregation
Cost Segregation is an IRS-approved tax strategy by which commercial property owners can increase cash flow by reclassifying the elements of a property into their appropriate (and shorter) useful life categories.
Segregating a property into the correct 5, 7, 15, 27.5, and 39-year “useful life categories” enables a larger portion of the building to be depreciated at the beginning of its useful life, as opposed to equally over 39 years.
Signature Group performs cost segregation studies to help its clients take advantage of this less known and under-utilized strategy.
Here are some additional cost segregation benefits:
Reduce current federal and state tax liabilities
Write-off building components that need replacement
Correct misclassified assets and receive "catch-up" benefits
Give us a call to see how we can help you develop a cost segregation strategy.