Proper identification and allocation of construction related costs into assets with shorter recovery periods is still one of the most significant opportunities to reduce your federal income tax liability. This process is called Cost Segregation. Cost Segregation is an analysis of the construction or acquisition documents of a building that identifies the existing components and assigns the associated costs of those components into proper depreciation classifications for federal income tax purposes. A Cost Segregation study will help you improve your profitability by maximizing your tax benefits on certain real estate assets and construction projects. There are tax planning opportunities if you:
Build a new facility Acquire real estate Renovate, remodel or expand The benefits of Cost Segregation studies include: Positive cash flow through accelerated depreciation Documentation to support depreciation deductions Accurate property records We have extensive knowledge and experience in tax and engineering analysis. We understand the complex process of constructing a building project and how the components work together. We are also “state-of-the-art” in the area of tax interpretation and application. We analyze the construction documents of a building project to identify the building components and allocate the associated costs into proper depreciation classifications. Our service offerings include:
A thorough, up-front analysis of benefits and scopeA range of service and deliverablesCombined tax and engineering experience Extensive industry experience Results with support Our approach and level of expertise gives us significant flexibility. We can perform Cost Segregation studies on newly constructed property, existing acquired property and property placed in service many years ago. We have what it takes. Please feel free to browse our downloads section of the website to get additional information regarding Cost Segregation and the services we provide at Arthur Lloyd LLC. You will gain additional insight through topics such as “Common Pitfalls”, “The Mechanics of a Cost Segregation Study”, “Additional Benefits and Real Life Success Stories”, and “Our Range of Services”. We are happy to discuss your specific opportunity on the phone or in person. Please contact:
Carl W. Padding
We are a consulting firm that provides appraisal services and cost segregation studies for business owners. We have offices in Austin, Dallas and Chicago. We consult on transactions of all types.