Engineered Cost Segregation

(401) 525-6544

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Overview of Cost Segregation

                                                                      
Cost segregation is used to accelerate depreciation deductions, defer income tax, and improve cash flow. These studies allow property owners to accelerate deductions by identifying components of their buildings that can be depreciated over five, seven, and 15 years as opposed to the standard 39 years (27.5 for residential). Qualifying elements can include certain types of lighting, millwork and wall covering as well as a portion of the building's electrical and mechanical systems to name a few. Site improvements such as curbing, sidewalks, drainage and landscaping also qualify.

The process, which is based on a detailed engineering analysis, involves an in-depth review of all relevant property information including cost data, lease agreements, and building plans as well as a thorough on-site inspection by the cost segregation engineer. The engineer then dissects the building costs and classifies them to the appropriate depreciable lives. Soft costs such as engineering, fees, builder's overhead and profit and construction period interest are then allocated in accordance with the findings of the CSS. The result is a comprehensive report which includes a detailed breakdown of costs associated with the property.

 Benefits of Cost Segregation

          1. Reduction in state & federal Tax liabilities
          2.  Insurance cost reduction
          3.  Increased cash flow through accelerated depreciation
          4.  Alliances between engineering, banking, construction and accounting
               are formed
          5.  Potential reduction in real estate property taxes
          6.  The study can assist in cost reduction of proposed construction of
               new buildings.
          7.  Corrections for misclassified assets allows the ability to "catch up"
               in the current year
          8.  Improve ability to financially qualify for credit

Contact Winthrop Solutions today to find out how cost segregation can
potentially increase cash flow and reduce state and federal taxes

                                                                                

 

 

TAKE ADVANTAGE OF OUR FREE PROJECT ANALYSIS TODAY  

 Winthrop Real Estate Solutions, LLC 
1240 Pawtucket Ave, Rumford, RI 02916

Howard L. Weldon

(Direct) 401-525-6544
 (Fax) 888-679-0773
   hweldon301@msn.com

 

Ewa S. Slusarek                                     William C. Bryson

(Direct) 401-921-6268                                                (Direct) 401-487-2280
(Fax) 401-463-0164                                                    (Fax) 888-679-0773
      ewaslusarek@aol.com                                               wbryson2280@gmail.com