Who qualifies for
Cost Segregation?
- Commercial Real Estate Owners, Developers, & Investors
- Leasehold Tenants Who Fund Their Own Tenant Improvements
- Must Be A ‘For Profit’ Entity
- Must Have a Tax Liability to Benefit
What makes
a good prospect?
Studies can be performed for current year transactions or on a retroactive basis. While every client is unique, we typically see a consistent benefit when the following criteria are met:
- Acquisition or New Build in excess of $750,000
- Interior renovation in excess of $200,000
- Companies with large fixed asset schedules
- Companies that renovate or make repairs frequently
Is my
property eligible?
Any commercial property which was placed into service after 1986 is eligible for a cost segregation study. Businesses that have built new structures, as well as those that have purchased real property or made leasehold improvements, expanded or renovated existing property may benefit from a cost segregation study. Generally, the cost-effective threshold for building projects or purchases is $500,000.
Among business that may benefit from a study are:
Apartment Buildings
Kitchen countertops and cabinetry, shelving, window blinds, removable floorcoverings, parking lots and walkways, pools and tennis courts.
Casinos
Electrical systems associated with particular machinery and equipment located within the casino area, security monitoring systems to surveil gaming activities, decorative finishes.
Factories & Manufacturing Centers
Process-related plumbing and electrical systems, additional ventilation, fire protection systems dedicated to specific business operations.
Grocery Stores
Electrical systems dedicated to refrigeration and point of sale equipment, signage, music systems.
Hotels & Other Lodging
Decorative lighting such as wall sconces and chandeliers, removable flooring, window treatments, kitchen equipment, decorative millwork.
Office Buildings
Network cabling, raised floors, and HVAC systems dedicated to IT equipment, uninterruptable power supply systems.
Restaurants
Kitchen cabinetry, exhaust hoods and kitchen ventilation, decorative items, drive-through equipment, electrical for televisions, plumbing and electrical systems dedicated to food preparation.
Retail Centers & Strip Malls
Merchandise lighting, electrical for point of sale equipment, security cameras, removable floor coverings, monument signs.
Warehouses
Truck turnarounds, loading ramps, parking lots, in-rack fire protection systems, pylons.