Cost Segregation Studies
Cost segregation studies performed by competent and experienced professionals can produce substantial tax benefits for business owners. Whether you own a facility or are renovating your property, building owners should consider completing a cost segregation study to reduce taxable income. Cost segregation studies analyze building costs to identify the value of tangible personal property, indirect costs and land improvements. These identified costs can be depreciated using an accelerated depreciation method that enhances cash flow.
Most business property owners can benefit from a cost segregation study. However, more specialized buildings, such as hotels, restaurants, and retail stores, are more likely to be eligible for accelerated depreciation. Performing a supportable cost segregation engagement is a highly technical process involving an in-depth understanding of the current tax law and relevant case history.
Scott and Company’s specialized focus on the hospitality industry positions us to provide you with a comprehensive look at your property. We will help you accelerate depreciation deductions normally hidden in the construction or acquisition costs. Additionally, we will provide you with full documentation and utilize cost-estimating procedures that align with the most current IRS rulings and tax laws. Our cost segregation services help you take advantage of a broad range of benefits, including:
- Improvement of asset classification
- Increase in cash flow
- Maximizes annual depreciation expense
- Reduction of income tax liability
- Reduction of real estate and personal property taxes
Call us today to inquire about our cost segregation services and to find out if your business is an ideal candidate for this study. Our hospitality team can be reached at 803.256.6021.