Cost Segregation Services

If you have constructed, bought, expanded or remodeled real estate, we can help you increase your cash flow by reducing your current taxable income. A cost segregation study is a strategic analysis that allows companies to accelerate their depreciation-related tax deductions. Generally, real estate loses its value over either 27 or 39 years; however, equipment and land improvements are depreciated over 5 to 15 years, meaning you can receive tax deductions sooner. A cost segregation study identifies equipment and equipment-related costs and land improvements that are depreciated over this shorter time period. You can enjoy tax deductions right now that you would otherwise have to wait years to receive.

In addition to new construction, cost segregation studies can be performed on existing facilities. The IRS allows taxpayers to catch up any depreciation deductions reclassified to a shorter depreciation life. In the past the adjustment had to be distributed over four years; now, it can be expensed entirely in the year of the change. This will allow you to increase the net value of current tax savings immediately. This boost in cash flow will help you facilitate your business plans.

Schlenner Wenner & Co. performs cost segregation studies for all types of industries, from apartment buildings and hotels to manufacturing facilities. Our sole focus is on maximizing the legitimate benefits available to you. Our income tax expertise ensures that you will maximize your cash flow while minimizing the income tax burden on the cost of your new building.

For more information, please e-mail Pat Plamann at pplamann@swcocpas.com or call 320.251.0286.