Erica Seppala

While it is generally recommended to do a cost segregation study in the same year a property is purchased, built, or remodeled, this doesn’t always occur. Property owners that do not do a cost segregation study in the same year that property was put into service can do a cost segregation look-back study.

The best time to do a cost segregation study is the year the property is put into service. This is the same year that you purchase, construct, or remodel the property. However, if you didn’t order a study in the first year, you haven’t missed out. You can have a cost segregation study done at any time with a look-back study.

For property owners, cost segregation can help save thousands of dollars through accelerated depreciation. The required cost segregation study to realize these savings can be expensive, so can you bypass this expense with DIY cost segregation? 

An approach (or methodology) of cost segregation is the method used to allocate total project costs to property assets. These approaches rely on construction and cost documentation, estimates, sampling, or a combination of these things to accurately perform a cost segregation study.

A cost segregation company specializes in assessing property components for accelerated depreciation, which minimizes tax liabilities for real estate owners. Some companies may also offer additional tax credit services to help businesses save even more on their income tax returns. In this post, we’ve selected the best cost segregation companies to help you accelerate depreciation on your commercial or investment property.

You can find out for yourself with Duffy+Duffy’s feasibility analysis. The form is quick and easy to fill out, and you can get a personalized estimate of your tax benefits, as well as a quote for the study fee. It doesn’t cost a thing, so you can add this well-established firm to your list when you’re comparing the top cost segregation companies.

Engineered Tax Services is a specialty tax firm that has helped clients claim millions of tax credits and incentives since the company’s establishment in 2001. Engineered Tax Services boasts a team of accountants, attorneys, engineers, and scientists to help businesses with cost segregation, research and development (R&D) credits, employee retention tax credits (ERC), and other tax services.

Pros Free feasibility analysis for cost segregation Free tax calculators Numerous services & software to claim tax credits & incentives Tax services available nationwide Excellent public reputation Cons Fees not disclosed online (not uncommon in the industry) No live chat support feature What Is KBKG? KBKG is a tax consulting firm that has helped its […]

A cost segregation study gathers information that is used to maximize depreciation on commercial and investment properties. A cost segregation study gives an in-depth look at various components of the property (everything from appliances to landscaping) to determine costs that can be depreciated over a shorter period of five, seven, or 15 years. A cost segregation study is also crucial for property owners who want to recover costs more quickly in the first year with bonus depreciation.

Cost segregation is a tax strategy that property owners can use to accelerate the depreciation of a commercial or investment property. Cost segregation allows for certain components of the property to be depreciated over a shorter timeline of five, seven, or 15 years. This accelerated depreciation can lower a property owner’s tax liability and increase cash flow.