What is Cost Segregation?
Cost Segregation is an engineering-based, tax savings tool to help companies that have acquired, renovated, constructed, or expanded real estate to reduce current income tax liabilities by accelerating depreciation deductions for qualifying components.
Properties That Can Benefit
- Apartments
- Assisted Living/ Nursing Homes
- Auto Dealerships
- Office Buildings
- Medical Buildings
- Manufacturing
- Hotels
- Retail Space
- Restaurants
Our Approach
We add cash to your bottom line by using an engineering-based approach to accelerate depreciation for your property.
Provide Clear Documentation
Everything is clearly documented to leave a thorough and supportable audit trail.
Identify Improvements
Improvements are identified through careful review of building plans and thorough site tours.
Quantify the Property
The most detailed level of cost information available is used
to quantify real and
personal property.Describe Methods Used
The costing methods used are thoroughly detailed within our final report.
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Case Study
Auto Dealership
A Cost Segregation Study proved especially valuable for a major Southern California dealership where we were able to reclassify $1,600,000 from 39 years to shorter tax lives to generate an estimated after tax net present value savings of $164,000.
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Case Study
Apartment Complex
Scarpello professionals were able to reclassify $7,300,000 in basis for a newly constructed luxury apartments from 27 ½ years to shorter tax lives resulting in $934,000 in estimated after tax net present value.
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Meet Scarpello
Work with a team that has extensive estimating, engineering, and construction experience that allows a study to identify and quantify items of personal property accurately – and in a manner acceptable to the IRS. Get a unique base of expertise in the real estate and construction industries in order to take advantage of the taxpayer privileges provided by the Internal Revenue Code (IRC) and reported regulations.
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October 2019
On September 13, 2019, the IRS issued new proposed regulations (REG-106808-19) that provide guidance ...
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