See What’s Possible with Cost Segregation
• Engineering-based analysis that identifies and quantifies building components • Components are then reclassified into shorter-lived tax categories, resulting in accelerated depreciation, tax deferral, and increased cash flow • Front-loading of depreciation leverages the time value of money
• Accelerated depreciation can create $30,000-$200,000 in federal tax benefits for every $1M spent • IRS-preferred strategy leverages your fixed assets while serving as an excellent asset management tool • Vehicle for tax savings – provides data supporting a myriad of additional tax strategies, including bonus depreciation • Manufacturing facilities are great candidates – high level of customization results in a large amount of assets that can be accelerated • Light manufacturing facility: In general, 10-30% of assets eligible for accelerated depreciation • Heavy manufacturing facility: On average, 30-50% of assets eligible
Shorter-lived 5 or 7-year assets may include: • Specialty electrical distribution • Dedicated specialized HVAC systems • Overhead cranes • Hyper-dense foundation pads and reinforced flooring for heavy equipment • Special-purpose equipment like refrigerated warehouses, clean rooms, etc. • Security systems
Shorter-lived land improvements may include: • Landscaping • Underground utilities • Paved parking lot • Drain pipes, sanitary lines • Retaining walls
Curious to learn more? Our industry tax leaders are here to answer your questions and see what you could qualify for. Let’s start the conversation.
