Carrara Business Services provides engineering based Cost Segregation Studies that meet or exceed the IRS Audit Technique Guide. No studies have been overturned by the IRS. We provide audit and inquiry protection to defend our work at no extra cost. Contact us for a Free Preliminary Analysis
What is Cost Segregation?
Cost Segregation is an IRS approved tax deferral strategy for Commercial Property Owners that accelerates depreciation and reduce the amount of taxes owed which provides a positive Net Present Value.
How does Cost Segregation work?
Engineers identify building components that can be classified into 5, 7, or 15 year categories instead of the conventional 27.5 or 39 year. This enables the building owner to accelerate depreciation.
“Why pay taxes before you have to!”
Benefits of Accelerated Depreciation with Cost Segregation
Depreciation for a property with Cost Segregation allows for significant increase in deductions within the first 5 years which creates a positive Net Present Value tax benefit.
Simply put, do you want $39,000 today or $1,000/yr over the next 39 years?
When to complete a Cost Segregation Study?
The ideal time for a study can vary depending upon the owner’s tax situation.
The best time to complete a study is during the year the building is purchase, constructed, or remodeled.
“Catch Up” Cost Segregation Study can be completed at any time. The IRS allows you to go back to 1987 to reclassify assets without amending prior returns.
Cost Segregation Results
Cost Segregation Report
Unit of Property (UOP): All our reports define each Unit of Property. A detailed cost breakout for each building system as well as other building components is defined for each UOP. This will be used as a guide in performing “Significance Test” under the Tangible Property Regulations. This will also be used in the future for Partial Asset Dispositions.