A Cost Segregation Study (CSS) is a tax-deferral strategy that lowers current income tax liabilities by accelerating depreciation on all eligible costs associated with past, present, or future acquisitions, construction, or building renovations. It is critical that professionals with the requisite knowledge of the tax laws and IRS guidelines, along with qualified engineers, conduct your CSS.
Cost segregation provides an opportunity to significantly reduce your current income taxes and improve cash flow. However, many property owners do not take advantage of these provisions and end up paying Federal and state income taxes sooner than they need to. A CSS can be performed for:
- Expanded or renovated property
- Property acquisitions (current or prior year)
- Newly constructed property
- Tenant leasehold improvements
- Inherited property with stepped-up basis
J.H. Cohn has the in-house expertise, from both a tax and engineering perspective, to perform a CSS on any commercial or residential property.
J.H. Cohn:
- Carefully follows strict IRS standards to uncover hidden tax savings for our clients nationwide
- Thoroughly analyzes construction or acquisition costs to identify amounts that can be allocated to specific asset categories with shorter depreciation lives than the building
- Provides clients with the requisite evidence should the study ever come under IRS scrutiny
Learn more about how a
cost segregation study can save you significant tax dollars.