Cost Segregation
Cost Segregation
Ahura Group is uniquely positioned to guide commercial and residential property owners and lessees through the recent tax rulings that have opened the door to significant savings.
Cost Segregation is a process through which particular portions of real estate (owned or leased) can be reclassified for depreciation purposes. Specifically, as allowed by recent court cases and authoritative pronouncements, certain portions of buildings and surrounding real assets can be depreciated over shorter periods of time than the traditional periods of 27.5 or 39 years.
While the total deduction over the 27.5 or 39 years does not change, the timing of the deductions does. Various components of a building, such as wiring, plumbing, concrete and HVAC may be segregated. This means they can be written off more quickly – which can mean a substantial increase in cash flow.
✔ Increased cash flow.
✔ Increased depreciation in earlier years.
✔ Taxpayers can receive an extra 50% depreciation deduction on certain new "qualifying" assets.
✔ Allows for future write-offs when structural components are replaced.
✔ Creates losses so you can carry-back if needed and carry-forward when applicable.
✔ Amended tax returns do not need to be filed as the IRS has an automatic change procedure that allows taxpayers to file forms with their current tax returns and realize the benefit in one year.
✔ The cost of the analysis is relatively in expensive compared to the ultimate savings.
Types of properties that may benefit from a Cost Segregation Study include, but are not limited to:
✔ Apartment buildings.
✔ Auto dealerships, service centers.
✔ Casinos.
✔ Banks.
✔ Daycare centers.
✔ Distribution centers.
✔ Gas stations.
✔ Hospitals.
✔ Hotels.
✔ Manufacturing facilities.
✔ Nursing homes.
✔ Office buildings.
✔ Restaurants.
✔ Retail stores & plazas.
✔ Ships, ocean cargo vessels.
✔ Truck terminals.
✔ Warehouses.
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