Cost Segregation is a strategic tax planning tool that allows real estate owners that have purchased, remodeled, expanded or constructed real estate to increase cash flow and spend less on taxes. FGMK’s Real Estate professionals partner with experienced engineers to combine expertise in architecture and construction to identify and segregate building components and improvements to shorter lives, thereby accelerating depreciation deductions and significantly reducing federal and state income taxes.
By carving out the maximum amount of such components with shorter depreciation lives with a detailed, engineered study, FGMK is able to generate significant tax savings and cash flow for the property owner. Results vary with each property, but present value of the tax savings averages approximately 5% of the building’s cost, with most of that savings realized in the first few years.
No matter the size or scope of the study, our experts deliver engineering-based cost segregation studies that stand up to the closest scrutiny by the IRS.
Virtually any kind of real estate is a candidate for a cost segregation study including:
• Newly constructed buildings and renovations
• Purchases of existing buildings
• Leasehold improvements owned by either the landlord or tenant
• Buildings and improvements purchased or constructed in prior years