Increase Cash Flow By Accelerating Depreciation Deductions
Cost segregation is the IRS-approved process of re-classifying components of your investment or business asset from longer tax life categories to shorter ones. This process allows the assets to be depreciated on a 5-, 7-, or 15-year schedule instead of the traditional 27.5- or 39-year depreciation schedule of real property. Many reclassed assets thereby become eligible for immediate 100% deprecation, using greatly expanded bonus depreciation rules. Your current taxable income is greatly reduced, and your cash flow greatly increased.
RESURE delivers Cost Segregation Studies for Commercial Real Estate Property Owners, Investors, and their Tax Professionals. Entrust your Cost Segregation Studies to a company with nationwide service that excels in identifying building component costs which can be depreciated more quickly than the building structure itself.
What is the RESURE Cost Seg process?
- Get your free cost seg feasibility analysis
- If your asset is a good cost seg candidate, we’ll share an engagement doc with you
- Once the proposal is accepted, we’ll schedule a physical property tour to identify accelerated tax deduction opportunities (and ensure we’re not claiming ones that are IRS-ineligible… that’s important, too!
- Soon after the site tour and comprehensive analysis is complete, a detailed cost seg report is compiled and shared with you.
- Your CPA uses your Cost Seg Study to claim accelerated depreciation tax deductions on your return, keeping money in your pocket today!
Can my CPA do this? Do we need RESURE?
Yes, so long as you have an extremely high degree of confidence that your CPA is going to correctly classify every component of your structure, so that you claim the right amount of tax deductions. So, if your CPA is a construction engineering expert, he can certainly do it himself. Practically, the best outcomes are achieved by us teaming up with your CPA to help you pay less taxes.
What type of expertise is required to perform a cost seg study?
Cost Seg is a niche area of tax expertise that combines knowledge of:
- Construction and Engineering
- IRS Asset Tax Classifications
There are both subdisciplines requiring specialized knowledge and study.
Is the best cost seg study the one that illustrates the highest tax deductions?
Unfortunately, illustrating higher tax deductions is not an indication of greater expertise. There have been numerous instances in which taxpayers have been penalized for claiming excessive cost seg tax deductions that were deemed unreasonable by the IRS. A cost seg study is imperative to claim the maximum amount of reasonable accelerated depreciation tax deductions.
When is the optimal time to get a cost seg study done?
The ideal time to get a cost seg study performed is as soon as a new asset or new construction is placed in service.
Can a cost seg study be done for assets placed in service in prior tax years (already reported on prior years' tax filings)?
Yes! You can get a study done to recover unclaimed cost seg tax deductions, In fact, the IRS has made it easy to do so by filling a Form 3115 with your current year’s tax return!