Cost Segregation Services
Improve Your Cash Flow
We can identify, separate and reclassify qualified real and personal property into shorter depreciable tax lives, using methods supported by favorable IRS rulings, procedures and court cases.
Real Estate Offers Real Opportunities
Whether you've purchased an existing facility or constructed a building from the ground up—owning real estate represents a significant investment for any business or investor. Cost segregation is a tax deferral strategy that enables you to effectively frontload depreciation deductions into the early years of ownership. This is accomplished by segregating the cost components of a facility into the proper asset classifications and recovery periods for federal and state income tax purposes. The end result is significantly shorter tax lives (5-, 7-, and 15-year) rather than the standard 39-year for commercial and 27.5-year for residential properties.
Cost segregation is an intricate process that is legal and allowable under state and federal tax laws. Many property owners do not take advantage of these provisions and end up paying federal and state income taxes sooner than they need to. Cost segregation provides an opportunity to significantly reduce your current income taxes and improve cash flow.
What properties can qualify?
- Assisted living facilities
- Auto dealerships
- Financial institutions
- Hotels
- Manufacturing facilities
- Multi-family residential
- Medical offices
- Office buildings
- Restaurants
- Retail properties
- Shopping centers
- Warehouses
- Wineries
Real Results Now
Here’s a hypothetical scenario to help illustrate how much more depreciation can be claimed in the first five years of ownership with a cost segregation study. For a given $1 million property investment classified as commercial property, with a depreciable life of 39 years, $118,000 would be expensed as depreciation in that 5-year period. But if the entire $1 million property investment was reclassified into property categories with much shorter depreciable lives, the increase in depreciation is dramatic.
Investment |
Property Classification |
Depreciable Life |
Depreciation Over Five Years |
|---|---|---|---|
$1,000,000 |
Personal Property |
5 years |
$942,000 |
$1,000,000 |
Personal Property |
7 years |
$777,000 |
$1,000,000 |
Land Improvements |
15 years |
$377,000 |
$1,000,000 |
Commercial Property |
39 years |
$118,000 |
Two Reasons To Choose Moss Adams
Here is what more than 90 years as a leading financial and business advisory services company delivers:
On-Time Quality
Moss Adams’ cost segregation group combines the expertise of engineers and construction specialists with experienced accountants that have a fine-tuned knowledge of tax law. Our studies are completed without requiring outside consultants. This speeds up the process and ensures a quality product.
Moss Adams’ longevity and large staff allows us to handle the most complex and time-sensitive studies. These studies result in significant tax savings and are valuable for other aspects of your financial picture. Your return-on-investment can be realized quickly. Our clients tell us they receive great value from their cost segregation investment.
Peace of Mind
Effective cost segregation meets every tax requirement of the IRS. Your Moss Adams cost segregation study will stand up to scrutiny. We take a proven, effective approach to tax savings, ensuring that our analysis and research are complete, recommendations are accurate, and documentation is in place. While striving to maximize depreciation and the corresponding tax savings, Moss Adams’ cost segregation group works closely with you to find the balance between tax savings and risk.
Find Out How Much You’ll Save
Contact your local cost segregation specialist, or send us an e-mail to receive an estimate of your cost segregation benefits, or estimate your own benefits with our Cost Segregation Calculator.
Cost Segregation Services Contacts
All Regions and Western Washington
Rob Grannum
425-303-3003
Eastern Washington
Lori St. Marie
509-777-0131
Oregon
Jeff Shilling
503-471-1283
Northern California
Tom Kessler
415-677-8307
Southern California
Chris L’Heureux
949-221-4057
Southwest
Bobbi Kay Nelson
505-830-6236
