Cost Segregation Studies and Capital Expenditure Analysis

In the current business climate, many businesses are looking to find a way to reduce tax liability and increase cash flow. Taking advantage of cost segregation is an IRS-accepted planning tool that will allow a business to increase cash flow and accelerate federal and state income tax depreciation deductions on real estate purchased, constructed, expanded or remodeled.

When you work with WebsterRogers, our professionals will perform a detailed study of your building and work to identify all items that qualify for shorter depreciable lives and move them into a 5, 7 or 15 year depreciable life. There may be a wide variety of items in your building that can qualify for shorter depreciable lives, such as electrical and piping systems, decorative and special finishes, lightings, wall coverings and parking lots, among others.

A cost segregation study can also be done on property purchased or constructed in a prior year. This may result in a catch-up deduction in the current year.

Our clients turn to us for tax strategies that help reduce taxes and increase cash flow. At WebsterRogers we have the experience in cost segregation to help you properly classify your fixed-assets and accelerate depreciation to help you save money.

“…our professionals will perform a detailed study of your building and work to identify all items that qualify for shorter depreciable lives and move them into a 5, 7 or 15 year depreciable life.”

Facilities where Cost Segregation Studies Are Most Beneficial:

  • Automobile Dealerships
  • Distribution Centers
  • Fast Food Restaurants
  • Food Processing Facilities
  • Hotels/Motels
  • Manufacturing Plants
  • Medical Centers
  • Nursing Homes
  • Office Buildings
  • Shopping Malls
  • Retail Chains

Cost Segregation Studies Recommended For:

  • Those building a new facility
  • Those acquiring an existing building
  • Those who are improving, renovating or expanding an existing building
  • Those conducting leasehold improvements on a current facility

Service Group Leader

Megan Ferguson
Tax Manager

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To view, download, or print the pdf article, please click on the link below: Six Steps to Sales Use Compliance_02.15.2021

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