Cost Segregation Studies

Cost Segregation Studies

Most tax returns include depreciation of personal property such as equipment and furniture over five or seven years. But many also miss out on other available federal and state tax benefits by depreciating their entire investment in constructing or acquiring a building over 39 years. Such an oversight can cost you thousands of dollars in improved cash flow.

A cost segregation analysis identifies specific building-related assets that also qualify for shorter federal tax depreciation lives. The cost segregation specialists at HBK work with businesses to ensure these opportunities are not missed.

A cost segregation study can lead to a substantial reduction in federal and state income taxes in the early years of a building’s life by accelerating tax depreciation deductions. As part of the cost segregation process, we identify the net present value of the resulting increased cash flow over the life of the facility to ensure you of a cost benefit. Our conclusions are based on sound tax principles and supported by IRS regulations, rulings and case law. Our team is highly qualified to identify opportunities for federal and state tax advantages for owners of commercial, industrial and rental real estate.

A cost segregation study should be considered if you are:

  • Constructing a new building
  • Purchasing an existing building
  • Undergoing a renovation or expansion
  • Constructing leasehold improvements

Cost segregation studies are one more way we work with you to create, grow and protect your wealth.

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