Did you know that a cost segregation study can help you save money on your taxes? At Sol Schwartz & Associates, we partner with cost segregation companies  to minimize your tax liability and increase the cash flow on your current, future or past real estate investments. We keep up with the ever-changing IRS provisions regarding depreciating property and combine innovative thinking with our partners’ technical expertise to ensure you receive the full benefits of the study.

What is a cost segregation study?

According to the IRS Audit Technique Guide, a quality cost segregation study:

  • Identifies and classifies a company’s assets into property classes (furniture, land, equipment, office building, etc.) and categories (short-lived and long-lived property)
  • Explains the rationale for classifying assets (personal or real property)
  • Substantiates the cost basis of each asset
  • Reconciles total allocated costs to total costs

A cost segregation study will typically:

  • Improve your company’s short-term cash flow
  • Identify costs that you can expense
  • Create a sound record for IRS defense

Do you need to conduct a cost segregation study?

You should consider a segregation study if you are:

  • Building a new facility
  • Purchasing an existing building
  • Renovating an existing facility

Please note that properties such as shopping centers, office parks, power centers, manufacturing facilities, industrial buildings and office buildings that have been in service since 1986 may also qualify for cost segregation studies.

We invite you to contact us directly, or continue browsing our website to learn more about how we can help you.