National Cost Segregation Specialists 

Thousands of Studies Completed | No Loss Record with IRS | Ongoing IRS Protection

 Cost Segregation Greatly Benefits Owners of Commercial Real Estate and/or Leashold/Tenant Improvements by Accelerating Depreciation. The Result is Decreased Tax Liability and Increased Cash Flow.

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The U.S. Treasury Department States:

 "Cost Segregation is a Lucrative Tax Strategy That Should Be Used In Almost Every Major Purchase of Commercial Real Estate."

                                                                -Wall Street Journal, June 2003  

What is Cost Segregation?

When a business or individual purchases or constructs a building for commercial use, the costs of that project are usually broken down between land and building. The land would not be depreciated. The building would usually be depreciated over 39 years for commercial property or 27.5 years for residential property. According to current U.S. tax laws and IRS rulings, cost segregation is a method of separating and distinguishing "personal" property assets from "real" property assets. By applying its principles, significant portions of building costs can be depreciated in as few as 5, 7, and 15 years, instead of the standard  27.5 years or 39 years for commercial property.

Personal property assets that qualify for a shorter class life would include items that do not take away from the structural stability of the building.

The pie chart below shows an example of a few commercial property assets (business or residential) that can be re-classified to shorter class lives. The red and blue portions of the chart represent building assets reclassified from, much longer, 27.5 or 39 year to, much shorter, 5,7, and 15 year property.

Cost Segregation, also known as accelerated depreciation, is a tax strategy for property owners to reduce their current income tax liability and increase cash flow. Maximum taxpayer benefits from accelerating depreciation can only be realized after conducting a comprehensive, engineering-based study, but generally tax savings can range around 9%-12% of the cost of the property. We offer upfront estimates of your benefits at no charge.

By segregating costs, we frontload depreciation deductions into the early years of ownership which means up to 40% - 60% of your buildings assets can be freed-up to increase cash flow. With cash in hand, you can now purchase additional properties, remodel current property, pay down debt or invest it however you like. 

For decades, Fortune 1000 companies have used cost segregation to increase their cash flow and defer taxes. Recent changes in the tax code and a series of revenue rulings and directions from the IRS make this service available to almost any taxpayer that owns a building or leasehold improvements. Now is the perfect time to enjoy the significant benefits cost segregation will provide. 

Who Qualifies for a Cost Segregation Study? 

Any commercial property owner who has done the following since 1987:

• Purchased a commercial building or facility
• Constructed a new commercial building
• Renovated, remodeled, restored or expanded an existing facility
• Paid for facility leasehold improvements
• Planned for a future 1031 exchange

A cost segregation study will yield the most benefit if the purchased or remodeled price of the property exceeds $200,000. Newly constructed buildings benefit right from the beginning. Older properties can qualify for substantial "catch-up" depreciation in the year they do the study. Here is a list of qualified properties that can benefit:

Amusement Parks - Apartment Buildings - Assisted Living Facilities - Bars/Sports Bars - Car Dealerships - Casinos - Convenience Stores - Dental Offices - Fitness Centers - Gas Stations - Grocery Stores - Golf Courses - Hospitals - Hotels/Motels - Industrial Warehouses - Manufacturing Facilities - Medical Clinics - Office Buildings - Rental Homes/Properties - Restaurants - Retail Centers - Self Storage Facilities - Sports Stadiums - Strip Malls - Warehouses

What are the Tax Benefits of a Cost Segregation Study? 

• Increased cash flow
• Large income tax deferrals
• Independent verification of depreciation schedules
• Audit protection
• Substantial catch-up depreciation for existing properties
• Suite-by-suite breakdowns of building costs
• Bonus depreciation qualification 

Our Process 

Getting started is easy and free. NCSS can now make this valuable tax strategy go to work for you. Because we provide the upfront work at no cost, you experience "Risk Reversal". We take the upfront risk of analyzing your individual numbers, coming up with a comprehensive estimate of your tax savings and determining if accelerated depreciation would be a beneficial tax strategy, at no charge or obligation to you.

Our general turn around time is 4-6 weeks. We have in-house engineers and cost estimators that would personally visit your site to provide a more reliable and documented study. The engineer assigned to your project would utilize all building plans and blueprints available for proper allocation. Upon completion, we deliver the final study to you and your CPA/tax planner who then applies the study on your tax return and you gain the benefits.

We have been providing accelerated depreciation services since 2001 and we continue to have a no loss record with the IRS. Our studies have stood the test of time and we provide ongoing IRS protection with every study at no additional charge.

If you could free up your money today and use it to your benefit tomorrow, our services could benefit you greatly! Contact us now and get started today. NCSS will get you an estimated, customized projection of your savings from applying cost segregation. IT REALLY IS THAT SIMPLE!