Press Room: Article

July 29, 2010

Cost Segregation: A Tax Advantaged Analysis of Real Estate

In an economy where cash is king, more than ever before, companies can minimize their tax liability and increase their cash flow through properly classifying building and/or leasehold improvement construction or acquisition costs into lives shorter than 27 ½ and 39 years (the typical recovery period for real property).

Although results will vary depending on the type of property, the additional deductions in the first two years from a cost segregation study can total over $700,000 for every $1 million in assets reclassified from 39-year to 5-year property.

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