Cost Segregation Studies

Benefits of a Cost Segregation Study

  • Improved cash flow due to lower taxes from accelerated depreciation
  • Provides detailed cost data for compliance with final regulations for expensing vs. capitalization
  • Increase in cash flow helps offset total project costs and could allow more extensive or more timely facility improvements, acquisitions or renovations than originally projected
  • Engineering-based cost segregation provides an independent third-party audit trail for depreciation classification of assets (compared to less-stringent, less-accurate percentage-of-project cost estimates sometimes used by firms without cost segregation specialists)