Cost Segregation Services
Our cost segregation studies Deliver on the Promise of helping clients realize all available benefits from their real estate holdings.
Cost segregation, an IRS approved method of re-classifying components and improvements to a commercial or residential rental building, can greatly reduce your taxable income and increase your cash flow.
Cost segregation can be a valuable tool for immediately increasing cash flow and creating tax-savings. The benefits of a cost segregation project are derived from accelerated depreciation based on classification of assets as personal property (5-year or 7-year depreciation) or land improvements (15-year) rather than real property (39-year or 27.5 year).
Example
A cost segregation study can be a benefit in many instances including new construction, major renovations, initial acquisitions and existing real estate holdings.
The following table illustrates the benefits of Skoda Minotti's Cost Segregation Services.
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Cost Segregation Project
|
First Year Increase in Cash Flow
|
Net Present Value Savings
|
|
78,000 sq. ft. Retail Strip Center with Grocery (New Construction)
|
$317,000
|
$417,000
|
|
238,000 sq. ft. Office Building (Acquistion of Existing Facility)
|
$115,000
|
$322,000
|
|
315,000 sq. ft. Manufacturing Facility (Correct 6 Prior Years' Depreciation)
|
$300,000
|
$245,000
|
For more information on how our Cost Segregation professionals can increase your cash flow and lower your tax liability, please contact
Chris Sivak
at 440-449-6800.
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Click here for a case study on how our Cleveland cost segregation services benefited one of our clients.
- Looking for more Skoda Minotti Insights on cost segregation? Click here for an article from Smart Business Cleveland authored by our own
Dave Walter, CPA, MBA.