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.
Clearly Document Values
Everything we do is clearly documented to leave a thorough and supportable
audit trail.Identify Improvements
We identify improvements through careful review of building plans and thorough site tours.
Quantifying the property
We use the most detailed level of cost information available
to quantify real and
personal property.Describe Methods Used
Our costing methods 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
Our team has extensive estimating, engineering, and construction experience permitting us to identify and quantify items of personal property accurately and in a manner acceptable to the IRS. Our experience in the real estate and construction industries provides a unique base of experience to take advantage of the taxpayer privileges provided by the Internal Revenue Code (IRC) and reported regulations.
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Power Lunch Program: Depreciation and Expiring Credits
Tom Scarpello talks about Depreciation and Expiring Credits on KMBZ 1660 Business Radio’s Powe ...
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