Careful transaction planning and execution are essential to minimize tax exposure. Our staff experience and capabilities in this area are unparalleled.
- Entity selection considerations
- Review of contracts and documents to ensure tax strategy is implemented correctly
- Treatment of legacy tax attributes
- Cost segregation studies
Cost Segregation Studies
Cost segregation studies are developed to shorten the depreciation time of personal property assets and reduces current income tax obligations. Cost segregation studies have to be IRS-approved and they can help real estate investors maximize their tax savings, increase cash flows and create further real estate development.
CCA’s cost segregation services are beneficial to those currently owning real estate properties, even properties owned for a number of years. We can also provide cost segregation services during the construction of commercial properties and multifamily residential properties, working alongside general contractors and architects during design and construction. When building a facility of any kind, it is strongly recommended that a cost segregation should be performed to maximize present value of the investment.
Identifying building-related assets that qualify for shorter tax depreciation lives allows for thousands of dollars in cost savings to the investor. We have over 30 years of tax consulting and compliance experience and our solutions have been vetted through various IRS regulations.
CCA’S COST SEGREGATION STRATEGY:
- Plan – Conduct interviews, coordinate process, and determine study feasibility.
- Analyze– Review contractor invoices, purchase agreements, blueprints, and architectural plans.
- Inspect – Conduct an on-site inspection.
- Report – Prepare a detailed report with summary showing cost reconciliation and tax classification.
- Implement – Work with client to implement changes to fixed asset system and to facilitate tax filings.