A cost segregation study is a sophisticated study that can benefit owners and lessors of real estate by classifying costs associated with capital expenditures whereby potentially maximizing depreciation of cost savings. Using a combination of federal and state tax expertise combined with construction engineering, cost segregation studies reclassify costs from longer depreciable lives to shorter depreciable lives (usually 39 to 27.5 years).

Owners of commercial real estate or individuals who fund build-outs of their leased space should consider the benefits of a cost segregation study which include:

• Increased cash flow
• Well documented audit trail that supports the classification of assets through our comprehensive report
• Maximized tax deferrals through accelerated depreciation deductions
• Reduced taxes on real estate

Our approach
The Padgett, Stratemann & Co., L.L.P. Cost Segregation Team has the resources to utilize engineering techniques and expertise to ensure the cost segregation analysis is well supported. Our approach is not only intended to generate savings as a result of increased depreciation expense, but is also intended to provide support in the event IRS questions the cost assinged to various assets.

Each cost segregation analysis is conducted by physically examining the property and not just by looking at financial documents. Our team will spend time looking for actual land imprvements, signange, retaining walls, exterior lighting, and other assets that may not be apparent on blueprints or survey documents.

Following our physical examination, our team analyzes drawings, plan surveys, appraisals, and other source documents to build and support an accurate cost segregation study that will gernate the most tax savings allowed by law. At the conclclusion of our study, we will provide you with a comprehensive report that identifies the depreciable lives of each asset and how the total amount agrees with all direct and indirect costs associated with the aquisition or development of the property.

For more information regarding cost segregation services, please feel free to contact:

Van Alston, CPA
van.alston@padgett-cpa.com
Phone: (210) 828-6281
TollFree: (800) 879-4966