Cost Segregation

PROJECT: Medical College of Wisconsin Basic Science Department, Milwaukee, WI

BOOST YOUR CASH FLOW

Take advantage of accelerated depreciation to increase cash flow and reduce taxes.

We provide Cost Segregation studies that result in substantial cash flow benefits and greater tax savings.

Cost Segregation can be an extremely valuable strategy for property owners and real estate investors. Our proven process uses accelerated depreciation deductions which results in even greater tax savings and cash flow opportunities.

Utilize one of the most powerful tax planning strategies available to property owners and investors.

What is a Cost segregation Study?

If you own a property, your assets may include not just a building and land, but also all of the building’s interior and exterior components. A significant portion of those assets fall into tax categories that can be depreciated much faster than the building itself – resulting in significant cash flow opportunities .

A Cost Segregation study aims to identify all components and costs related to a real estate asset (including both constructed and acquired properties) and reclassify them in order to take advantage of accelerated depreciation methods. And the reason we accelerate depreciation is simple: to increase your cash flow and reduce your taxes.

Our Cost Segregation studies are based on a sound cost engineering analysis of your property combined with a focused tax analysis that will allow you to accelerate depreciation from the normal 27.5 or 39-year schedule. With this tool, you can virtually write off all property that the study identifies to be a 5, 7, and 15-year property.

Our Approach

We provide engineering-based cost segregation studies that meet all IRS standards based on real cost estimating knowledge and skills. Our experienced team has a thorough understanding of construction methods, materials, and costs, which can mean the difference between getting some of the benefits versus all of the benefits. This added benefit will more than off-set the fees for the project.

Our Cost Segregation studies can also be performed on a building placed in service in the past using a look-back study. If a proper cost segregation study has not be performed, property owners can “catch-up” the additional depreciation in order to obtain more cash flow. Additionally, our studies take into account recent tax law changes in the TCJA and the CARES Act, among others, that provide new opportunities for even greater cash flow.

Benefits of Cost Segregation

Boost Cash Flow

With bonus depreciation at 100%, for every $1M in building cost the average building owner can receive cash flow increases of $60K to $150K in the first year.

ROI

ROI’s for Cost Segregation studies have jumped significantly with the latest tax code changes. It is common to see them greater than 50 to 1 or even higher (we have several recent studies with ROI’s of greater than 200 to 1).

Acquisition Benefits

The same benefits for new construction are now extended to acquisitions creating never before seen benefits.

Opportunity to Reclaim Past Depreciation

A Cost Segregation study enables property owners to correct misclassified components and catch-up the additional depreciation.

"Their staff were professional and extremely knowledgeable and I was impressed with the quality of the study, which they completed in time for us to take advantage of in the current tax year. I would highly recommend The Concord Group and I look forward to working with them again on future projects."

Bill Lawless

Owner | The Gage, Chicago, IL

Owner's Representation & Project Management

Technical Services

Project Controls

Real Estate Advisory Services

GSA Schedule