Cost Segregation

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Finding Hidden Tax Deductions

Are you paying taxes on your commercial real estate sooner than you need to? A cost segregation study can identify avenues to front-load your depreciation deductions, defer tax liabilities and maximize your cash flow now and in the near future.

What is a Cost Segregation Study

When you buy or build commercial property, it typically depreciates over 39 years (27.5 years for residential properties).

A cost segregation study breaks the property down into components and reclassifies those components into proper asset classifications with shorter depreciation lives.

This shortens the tax life of your assets of 27.5 or 39 years to shorter terms (i.e., 5, 7 or 15 years), allowing you as a business owner to defer taxes and have more cash on hand today.

To qualify for a cost segregation study, you must have:

  • New buildings under construction
  • Existing buildings undergoing expansion or renovations
  • Commercial properties that you purchased
  • Leasehold improvements or “fit-outs”

Hogan - Hansen’s cost segregation professionals are well-versed in providing assistance in even the most complex situations. This, combined with our expertise in tax code, ensures you get a tax deferral strategy customized to your business’s needs that provides the cash you need in early years of asset ownership.

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