Real Estate Cost Segregation Studies
Cost segregation is an IRS-sanctioned asset reclassification procedure that accelerates tax-depreciation deductions of real property. Typically these costs are depreciated over 39 years for commercial property and 27.5 years for residential property. However, many of these costs qualify for 5-, 7- or 15-year depreciation. Performing a cost segregation study does not increase the owner’s risk of audit.
EBI Consulting, through alliance partner Kingfisher Analytics, offers cost segregation studies to clients that have acquired, constructed, or improved commercial property. This offering can save property owners 5-15% of real estate project costs, as real estate owners can generate a tax benefit of 22 cents for every dollar reclassified from 39-year property to 5-year property. For every $1,000,000 reclassified, owners reduce their tax liability by $220,000.
To gain substantial tax savings on your real estate property through a cost segregation study, contact EBI Consulting at 781.273.2500 or info@ebiconsulting.com.
Other real estate due diligence consulting services offered by EBI Consulting include: