CPA’s And Commercial Property Owners
What Will Cost Segregation Save You?
Please enter your contact information below. Once submitted you will be prompted to enter all of the properties’ information so that we can analyze your potential savings by using cost segregation.
What Is Cost Segregation?
Cost segregation is an application of tax methods by which commercial property owners accelerate depreciation and reduce the amount of taxes owed all on an accelerated timeline. The most common outcome of cost segregation is to quote the August 2004 journal of accountancy for CPAs “A taxpayer can substantially increase cash flow by segregating property costs.”
What Is The Segregated Cost Method?
A cost segregation study accelerates the depreciation of a building, demolishing of a building, or renovation components into shorter depreciation categories. The tangible property regulations dictate the allowable accelerated depreciation schedules and what exactly is defined independently as depreciable assets.
An example of tangible property that cost segregation tax methods can be applied is decorative items such as carpet, molding, and interior windows can be moved from 39 or 27.5 year depreciation to a 5 or 7 year category. The 15 year category would include landscaping, hardscaping, site utilities, and paving, also known as land improvement.
Why Is TPTM Best For Cost Segregation?
Eric P. Wallace, CPA is a nationally recognized expert in tax, accounting, auditing, and consulting for the construction, real estate, and homebuilding industries. His work specifically focuses on tax method changes that provide significant tax deductions for the real estate and construction industry and their related owners. As the cost segregation tax methods are all contingent on the tangible property tax regulations this presents the opportunity to receive the most thorough and accurate application of cost segregation, which ultimately lands the most tax savings in the least amount of time possible.
How Our Cost Segregation Study Process Works
Step 1 Tax Depreciation Schedule
Provide TPTM with your federal tax depreciation schedule.
Step 2 Analysis
TPTM will provide a comprehensive analysis. This information will show predictive results for Tangible Property Regulation study, when applicable, and cost segregation pre-analysis so an informed business decision can be made.
Step 3 Engage
TPTM requests a 50% retainer for the project to begin.
Step 4 Data Collection
TPTM will request documentation such as appraisals, blueprints, closing documents, cost detail information, depreciation schedules, photos, etc.
Step 5 Site Survey
A site visit will be scheduled, and the property will be surveyed with detailed, accurate record-keeping made available to our engineering staff.
Step 6 Final Study
Our project turnaround time is fast. Your final study will be completed within a few weeks of data gathering. The IRS 4115 form will be completed upon request and signed by our CPA staff or yours as you wish.