Cost Segregation

Taxpayers are typically correct in depreciating personal property such as equipment and furniture over five or seven years, but they often neglect available federal and state tax benefits by erroneously depreciating their entire investment in constructing or acquiring a building over 39 years. A cost segregation analysis identifies specific building related assets that also qualify for shorter federal tax depreciation lives potentially creating significant increased cash flow benefits.

Performance of a cost segregation study will reduce federal and state income taxes in the early years of a building’s life by accelerating tax depreciation deductions, resulting in increased current cash flow. As part of the cost segregation process, we identify the net present value of the increased cash flow over the life of the facility to ensure there will be a cost benefit to the client. Our conclusions are based on sound tax principles and are supported by IRS regulations, rulings and case law. Our team is highly qualified to identify opportunities for federal and state tax advantages for owners of commercial, industrial, and rental real estate.

 

A COST SEGREGATION STUDY SHOULD BE CONSIDERED IF YOU ARE:

  • Constructing a new building
  • Purchasing an existing building
  • Undergoing a renovation or expansion
  • Constructing leasehold improvements

  • One Stop Shop

    HbK Sorce

    Taxes and investments go hand in hand. HbK is the trusted advisor to many for their accounting needs and with that, through HbK Sorce, we provide financial services as well. You can find out more about HbK Sorce offerings by visiting their web site here www.hbksorce.com.



  • Times Have Changed

    Many years ago it was actually un-professional conduct for accountants to advertise. The reason you don’t see many billboards or commercials on TV for CPA firms is that we develop business through relationships. We always appreciate a business referral to share how HbK can help. See the Principal Profiles page to make a direct contact with someone regarding a referral.



  • Lifelong Learning

    Training

    Hbk recently won an award for our training program, HbK Leadership University. One of the features of that program that sets us apart is that much of our training is done in house – we teach the HbK Way along with the how and why. This allows our staff to get up to speed quicker and better able to serve you.