Cost Segregation Studies
Increase Cash Flow with Cost Segregation
A cost segregation study breaks down construction and acquisition costs of your property into specific asset classes with varying useful lives. By segregating components and allocating depreciation accordingly, the majority of property owners find significant tax savings. These categories include personal property, site improvements, buildings / structures, and land.
Whether it’s an office building, retail space, industrial facility, mixed use development, or specialty property, McCoy Valuation can help you unlock tax benefits with comprehensive and reliable support for your tax filings. We work closely with property owners and CPAs to ensure you have adequate information for the IRS that is compliant with the U.S. Tax Code. For more information, please contact our team to see how we can help you save money through accelerated depreciation with a cost segregation study.
Cost Segregation Asset Classes
Typically includes furniture, fixtures, and equipment, which can be depreciated over the next five to seven years.
Most commonly paving, landscaping, sidewalks, sewers and storm drains, and more that is depreciated over the course of 15 years.
Buildings / Structures
Large improvements such as buildings are depreciated over 27.5 or 39 years, depending on the specific property type.
Land assets cannot be depreciated for cost segregation purposes
Cost Segregation Steps
Submit Property Information
Sign Engagement Letter
Schedule a Virtual or In-Person Site visit
Benefit from Tax Savings
Cost Segregation Property Types
Accelerate Depreciation with Cost Segregation
Our team can help you navigate the intricacies of depreciation analysis to help you identify and unlock tax savings. First, we will evaluate your property to understand its components, condition, and financial profile. Then, we will complete an in-depth analysis focused on categorizing portions of your building into the appropriate useful life class. Lastly, by decreasing the usable lives of various components from the standard 27.5 or 39-years, we will increase depreciable expenses to lower your income and reduce your tax burden.
Check If Your Property Qualifies for Tax Savings
Share more about your property and our team will reach out to you shortly about your cost segregation assignment and how we can help.