Cost Segregation

 Cost Segregation Proposal       Actual vs Estimate       Sample Study  

Depreciation Acceleration is known as Cost Segregation by the IRS.

Cost segregation is the IRS approved method of re-classifying components and improvements of your commercial building from real property to personal property. This process allows the assets to be depreciated on a 5, 7, or 15-year schedule instead of the traditional 27.5 or 39-year depreciation schedule of real property. Thus your current taxable income will be greatly reduced and your cash flow will increase.

Industry experts have indicated over 70% of all Cost Segregation reports leave commercial property owners exposed to IRS scrutiny and substantial tax liability due to insufficent engineering and lack of supporting documentation.

The shocking truth is less than 3% of commercial properties have been cost segregated due to the unwillingness of licensed CPAs to back unfounded cost segregation studies.

According to the IRS Office of Chief Counsel
"An accurate cost segregation study may not be based on non-contemporaneous records, reconstructed data, or taxpayer’s estimates or assumptions that have no supporting records."

CommercialRelief provides the most comprehensive, engineer performed study ensuring 100% IRS compliance while enabling maximum tax benefit.

Every study is reviewed and audited by our experienced staff of Engineers and CPAs. Our final study includes component level breakdown for asset management and detailed engineering documentation providing a complete stand alone study.

                      "We do NOT provide engineer based cost segregation studies,
                  we only provide a true engineer performed cost segregation study!"

                                                                                     David George, Founder & CEO
                                                                                     CommercialRelief

Our industry leading engineering performed Cost Segregation study provides IRS defendable maximum deductions. Click here for a white paper detailing the cost segregation industry.

The American Institute of Certified Public Accountants
"Money doesn't grow on Trees but it could be hidden in the walls? What would you say if someone offerred you a dollar in exchange for a dime?"

Journal of Accountancy
"The average cost segregation study identifies 25% to 30% of a property’s basis that is eligible for faster depreciation"

Real Estate Weekly
"Building owners and managers who do not hire the appropriate experts to conduct a cost segregation analysis will fail to take advantage of significant tax benefits."

Apartment Finance Today
"Tax-savings trick: Cost segregation studies allow owners to pocket more cash"

Dealers Edge
"Cost segregation can increase cash flow for car dealers"

Forbes Magazine
"If you have an investment property, take it like a sponge and squeeze it"

California CPA Magazine
"Cost segregation is one of the IRS’ cash-flow secrets that CPAs, financial planners, real estate investment managers and other professionals can use to realize tax savings for their clients."

Journal
"A taxpayer can substantially increase cash flow by segregating property costs."

For additional information:
Please visit the IRS website for the complete Cost Segregation Audit Techniques Guide.