If you
have constructed, purchased or renovated a property,
in the last several years, you may be missing out on
a very taxpayer friendly tool that allows you to
defer some Federal income taxes through a service
known as cost segregation. Taking advantage of the
time value of your money, it amounts to an interest
free loan from the IRS.
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What is Cost Segregation?
A cost segregation study is a Federal income tax
tool
that increases your near term cash flow, in the form
of a deferral, by utilizing shorter recovery periods
to accelerate the return on capital from your
investment in property.
Whether newly constructed, purchased or
renovated,
the components of a building may be properly
classified, through a cost segregation study, into
shorter recovery periods for computing depreciation
deductions.
The study properly carves out, typically into
five, seven
and fifteen years lives, certain qualifying portions
of your building that are normally buried in a
thirty-nine year or twenty-seven and a half year
category.
For more information on POER's Cost Segregation
Service,
see our brochure.
Who Benefits?
The ideal candidate
for a cost segregation study is:
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A
tax paying entity paying United States Federal Income Tax
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Recently constructed, purchased or renovated a property within the last 5 years
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Typically Not a REIT
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Not
intending to “flip” the property
POER’S Process
We perform a detailed review of your facility,
assets
and accounting to provide you a detailed analysis
that documents how you can maximize your cash flow.
POER mirrors the IRS’ recommendations, as
outlined in
the IRS’s Cost segregation Audit Techniques Guide,
to
the fullest extent possible.
Why POER?
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POER uses in-house
professionals with construction industry
backgrounds such as architects and engineers to
conduct our studies
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We understand the
correct cost segregation methodologies and
employs accurate estimating techniques as
prescribed by the IRS
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POER’s studies are
designed to be fully compliant with the IRS’s
recommendations in the Cost Segregation Audit
Techniques Guide
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We provide expert
testimony in the unlikely event
of an audit
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POER’s electronic
work papers provide a complete
and detailed
audit trail for each project
Estimate Your
Benefits
The benefits of a cost
segregation study may be accurately estimated prior
to performing a study. POER provides this service
for free in order to help you best evaluate how this
service may benefit your particular building and
situation.
For a free estimate of
benefits, for your particular property, contact a
POER office
near you, or go to our
contact us
page to send us an email with your information and a
POER representative will contact you. |
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Have Questions?
Check out our FAQ for
our answers to the most
commonly asked questions about this service.
Click here for the
Cost Segregation FAQ |
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What Will My
Savings Be?
As a rule of thumb; the
net present value of the
deduction or benefit is
typically 2% - 4% of
the capitalized cost
for the property.
Click here, for an illustration of the
average net present
value of a study, per million dollars of
capitalized costs, for various building types
that typically benefit from
a cost segregation study. |
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What is a Quality Cost Segregation Study?
See what the IRS considers to be the
Principal Elements
to a "quality" cost
segregation study
and report, as described in the
IRS's Audit Techniques Guide. |
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When Is A Study
Performed?
Ideally, a cost segregation study should be
performed in the same year a building is
either constructed, purchased
or renovated.
This provides for the
greatest benefit and the most accurate
collection
of the relevant data.
Cost Segregation studies may be performed
within several years of constructing,
purchasing or renovating a property. The IRS
allows for a current year "catch up" on
missed depreciation; however, the benefit
does diminish over time. |
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The Evolution of
Cost Segregation
See the history timeline
of
depreciation
and the evolution of Cost
Segregation, including
recent legislative acts affecting
depreciation,
click here. |
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