Cost Segregation | Revcon Solutions

ENGINEERED COST SEGREGATION STUDY

Money doesn't grow on trees, but it could be hidden in your walls. Commercial Property purchases or renovations within the last 20 years can qualify for Federal Incentives. Average Tax benefit is $75,000 for every $1 million in purchase price, construction cost and renovations.

WHAT IS A COST SEGREGATION STUDY? 

A Cost Segregation study is a federal income tax tool that permits commercial real estate owners or tenants who have performed significant leasehold improvements to reclassify real property for depreciation purposes as more rapidly depreciating personal property.

 

This reclassification results in significant cash flow benefits in both present and future years through considerably shorter depreciable tax life and accelerated depreciation methods. If your building is depreciating on a conventional scale of 27.5 or 39.5 years, a cost segregation study can re-categorize it to depreciate in 5, 7 or 15 years. Using this cash surplus to reinvest in your business or pay down debt is a great way of maximizing the time value of money. 

 

An average cost segregation study offers approximately $100,000 in additional depreciation for every $1 million in purchase price, construction cost or renovations over the normal 27.5 or 39 year straight line method.

“ Cost Segregation is a lucrative tax strategy that should be used in almost every major purchase of commercial real estate. 

- US Treasury Department

WHO QUALIFIES?

Any commercial property owner or tenant who in the last 20 years spent more than $500,000 on the following:

  • Purchased a commercial building or facility

  • Constructed a new commercial building

  • Renovated, remodeled, restored or expanded an existing facility

  • Paid $250,000+ in the last 10 years for facility leasehold improvements

ITEMS TYPICALLY

RECLASSIFIED

  • Site Improvements

  • Landscaping

  • Parking Lots

  • Light Fixtures

  • Plumbing

  • Flooring

  • Millwork

  • Electrical Wiring

  • Roofing

  • Partition Walls

  • Cabinetry 

  • Furnishings

  • Shelving

  • Wall Coverings

COST SEGREGATION BY TYPE

OUR METHODOLOGY

Revcon utilizes a team of highly qualified professionals who adhere to the IRS recognized detailed engineering approach to perform all Cost Segregation Studies. This methodology maximizes benefits and assures that IRS guidelines are followed.

 

  • Consult with you and your advisers regarding your effective tax savings

  • Evaluate your tax status and future business plans to determine, with your CPA, the applicability of Cost Segregation for your particular project

  • A comprehensive review of your construction invoices and building plans by our tax and engineering staff to maximize the allocation of five, seven, and fifteen year assets.

  • An on-site inspection of the building to accumulate additional facts for the study — including photos of the building’s exterior and interior.

  • Appropriate allocation of all indirect (i.e., soft) construction costs, which are easily overlooked.

  • Final reports that provide easy-to-use data for your tax planning.

  • Audit defense provided as part of engagement in the event of examination

  • Assisting your tax professional in the completion of all applicable tax forms

WHY DOESN'T EVERY BUILDING OWNER & CPA KNOW ABOUT THIS?

 

The answer is simple; it is not their area of expertise. Although some building owners and CPA's have substantial experience with Cost Segregation, most do not. There is a dearth of true educators in this field, which unfortunately leads to much misinformation. These factors have caused countless thousands of building owners to miss out on this powerful tax savings strategy.

ALREADY CLAIMING BONUS DEPRECIATION?

Our experts can review your credits and documentation to evaluate opportunities to optimize your claims and audit process. To date, we have had zero disallowances and have produced engineering studies in all 50 states, serving our clients in multiple disciplines including: Cost Segregation, Research & Development Credits, WOTC Hiring Credits, and Property Tax Appeals.

ACTIVATE TODAY

Contact us today, and we can provide you with a no-cost preliminary analysis, and facilitate a discussion with you and your CPA or tax professional to determine if a Cost Segregation Study lines up with your tax strategy.

Determine My Eligibility

Our average client experiences over $4,000 in savings, per employee. Click below to access our questionnaire and determine your eligibility. Within 24 hours, we will notify you of what programs you qualify for, as well as quantify the potential amount we can secure for you. 

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