WHAT IS IT?

A cost segregation study is a review of the costs associated with the acquisition or construction of a building and reclassifying the depreciable life of the various assets in order to improve the cash flow of the business by reducing the tax liability of the firm. This is accomplished by accelerating the depreciation on assets reclassified as personal property components. To determine which assets are to be reclassified, an engineering cost analysis of the facility is performed and the assets listed according to their use or function.

The reallocated assets are then assigned a cost by estimation methods or from the owner’s cost records and an appropriate depreciable life determined. The end result is that the owner receives an increased cash flow by trading a non-cash transaction (depreciation) for a cash transaction (lower tax payout) over the life of the facility.

Use our Cash Flow Calculator for an example of the savings you could realize.

WHO CAN USE COST SEGREGATION ANALYSIS?

If you can respond yes to any of the following, a Cost Segregation Analysis may greatly improve your
cash flow by reducing your tax liability:

Have you recently purchased a new building?
Have you recently built or do you plan to build a new building?
Have you remodeled or expanded an existing building?

We have been performing cost segregation studies for over seven years for a large variety of
businesses including:

– Retail Outlets
– Manufacturing
– Medical and Dental Clinics
– Surgical Centers
– Nursing Homes
– Automobile Dealerships
– Distribution Centers
– Warehouses
– Restaurants
– Hotels

CALL US AT 812-285-1250 FOR A NO COST ESTIMATE OF YOUR POTENTIAL SAVINGS.