Can cost segregation be used as a planning tool?
Cost segregation is often viewed as a tax-saving strategy, but it can also serve as a powerful planning tool for property owners and investors. Beyond
USTAGI is a national provider of Cost Segregation Studies. A cost segregation study is a tax strategy that allows commercial property & residential property owners to accelerate the depreciation of certain assets, which can result in significant tax savings. The study involves identifying and reclassifying assets within a property to shorten their depreciation period, which results in a higher amount of depreciation deductions in the earlier years of ownership.
The benefits of a cost segregation study include:
To perform a cost segregation study, USTAGI will conduct a detailed analysis of your property and its assets, which involves:
The detailed engineering approach from actual cost records, also called the “detailed cost approach” or “direct cost method”, uses cost information from contemporaneous construction and accounting records. In general, it is the most methodical and accurate approach, relying on solid documentation of the construction costs and minimal cost estimating. Construction documentation, such as construction drawings, specifications, contracts, job reports, change orders, payment requests, and vendor and supplier invoices, are used to determine unit costs.
The detailed engineering cost estimate approach (or detailed estimate approach) is similar to the detailed cost approach. The difference is that the detailed estimate approach estimates costs, rather than using actual costs. This approach is used when cost records are not available such as for an acquisition of used property
The construction cost estimate approach is a hybrid of the detailed engineering cost estimate approach and a modeling approach. The modeling approach uses a created model (or template) to analyze multiple facilities that are nearly identical in construction, appearance, and use.
A same year study is for properties purchased in the current tax year.
Properties that have a basis up to $750,000.
A lookback study is for a property purchased in a prior tax year.
Properties that have a basis up to $750,000.
A same year study is for properties purchased in the current tax year.
Properties that have a basis up to $750,000.
A lookback study is for a property purchased in a prior tax year.
Properties with a basis up to $750,000.
$2,500 Tax Credit, 45L Energy Tax Credit is for properties that are new or improved that meet applicable Energy Star home program or DOE Zero Energy Ready Home Program requirements.
Properties that are new or improved.
If you have multiple properties, feel free to use this worksheet to input the properties information.
Those who have multiple properties.
If you have a residential property with greater than four units or a commercial property.
Those who need a custom quote.
Check out our video answers to some of our most frequently asked questions.
Cost segregation is often viewed as a tax-saving strategy, but it can also serve as a powerful planning tool for property owners and investors. Beyond
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