By accelerating tax depreciation, property owners can defer reported income to future years and, in turn, defer income tax obligations to future years. The overall income tax obligation over the life of the property does not change – only when it is paid. The benefit of a cost segregation analysis can be quantified in terms of the present value of these tax deferments.
In a cost segregation engagement, the Cushman & Wakefield team typically performs a detailed property inspection, reviews available construction cost detail, reviews available construction drawings, and considers other available descriptive information on the subject property. We then prepare cost estimates of the property eligible for accelerated depreciation and provide a thorough report detailing the findings. This report is used as support for the property owner’s advantageous tax reporting position.
Cost segregation consulting should be performed by an engineer with familiarity in the construction and cost estimating fields, expertise in tax law, and experience in preparing and defending work products that may be reviewed by the IRS. Cushman & Wakefield has in-house cost segregation engineering professionals with many years of tax consulting experience. We are happy to provide a detailed benefit projection and fee quote for your real estate acquisitions or developments as a courtesy. Please fill out the questionnaire below if you are interested.
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