WHAT IS COST SEGREGATION?
Cost Segregation is a method for a business to increase its short-term cash flow by deferring its tax liability in favor of accelerated depreciation on qualified assets. Typically, a cost segregation study is performed on recently constructed facilities; however, most newly acquired buildings can also be subjected to a cost segregation study no matter their age. As such, cost segregation consultants are essential in these studies.
Lindon Engineering Services performs these studies by determining which assets can be reclassified according to their use or function. The primary goal is to identify those assets that can be reclassified as personal property. Personal property can subsequently be subjected to accelerated depreciation. The reallocated assets are then assigned a cost by engineering estimating methods or from the owner’s cost records followed by the determination of the appropriate depreciable life. The end result provides the owner with increased cash flow early in the life of an acquired asset by increasing their depreciation expense and decreasing their tax liability. As an example, please use our Cash Flow Calculator to determine the estimated annual cash flows generated by a simple cost segregation study.
Use our Cash Flow Calculator for an example of the savings you could realize.
WHO CAN USE IT?
A simple way to determine your eligibility for a cost segregation study is by answering “yes” to any of the following questions:
(1) Have you recently purchased a new building?
(2) Have you recently built or are you planning to build a new facility?
(3) Have your remodeled or expanded an existing building recently?
We have been performing cost segregation studies for over twelve years in which time we have completed over fifteen hundred studies nationally. We have performed these studies on a large variety of businesses including:
The people at Lindon Engineering have always done a great job with our cost segregation studies, which have resulted in significant tax savings. They are easy to work with, they are professional, and they go the extra mile for their clients. I highly recommend them and their services.
Sherie – Evergreen Limited (a dealership group)
- Retail Outlets
- Manufacturing Facilities
- Medical/Dental Clinics
- Surgical Centers
- Nursing Homes
- Apartment Complexes
- Automobile Dealerships
- Distribution Centers
- Office Buildings
If you have questions about your situation, please feel free to give us a call and we will answer your questions without obligation.