Cost Segregation is one of the most valuable tax planning strategies available to commercial real estate owners. 

Cost segregation lets you accelerate depreciation of certain business assets by reclassifying components of your facility as personal property, rather than real property. You’ll be able to claim more deductions and lower your overall tax liability, which will yield significant, immediate cash flow gains.

Cost segregation is an I.R.S. approved method of reclassifying components of and improvements to your commercial building as personal property.

The process allows you to depreciate assets on a 5, 7 or 15 year personal property schedule (I.R.S. § 1245 property), rather than the traditional 27.5 year or 39 year real property depreciation schedule (I.R.S. § 1250 property).

Most CPAs use the traditional straight-line method of asset depreciation. As a result, many companies overlook a powerful tool to reduce their tax liability. In fact, fewer than 10% of U.S. businesses take advantage of accelerated depreciation on qualified properties.

Your business may be missing out on significant tax strategies. Property Allocation Consultants identifies accelerated depreciation opportunities for your business using the Modified Accelerated Cost Recovery System (MACRS). A robust, fact-based Cost Segregation Study zeroes in on strategic tax solutions specific to your company.

The Property Allocation Consultants team includes experienced tax professionals who conduct accurate cost segregation studies in collaboration with highly qualified engineers, architects and industry experts.

We will send in our team of engineers and tax specialists to identify and separate components of your commercial or rental property.