SPECIALTY TAX CREDIT ADVISORS
Cost Segregation Studies
Schedule a free cost segregation consultation to find out if a study could help your company save on taxes for the present and past tax periods.
Your Initial Consultation ExplainedSchedule Your Cost Segregation Study Consultation
Our initial consultations are free of charge. In fact, we only charge for our services if we are able to find qualified credits.
Let’s find out if a study makes sense together.
Cost Segregation Services Highlights
No-Risk
Our cost segregation evaluations are always 100% free, and we only invoice for our cost segregation studies out of credits found. If we don’t find you qualify for the credits we identify, you don’t have a bill.
On-Demand
If we identify credits/incentives for which you qualify, we partner with your primary accounting firm to complete the necessary studies and filings as part of your broader tax strategy.
Entrepreneurs at Heart
We love what we do because our days are filled helping innovative & entrepreneurial firms free up capital for growth via the programs that help keep our country on track for a bright future.
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Unlocking Tax Savings with Cost Segregation Studies
The Problem:
The US tax code is so broad and complex that no primary firm can stay current on all aspects, AND companies end up paying more taxes than they should when nuanced & complex credits/incentives are not attained.
Cost Segregation: The Classification of Construction or Acquisition Costs Allows Lucrative Tax Savings
Cost segregation is an amazing opportunity for tax savings for owners of real property but requires a proper study and report.
As a leading Cost Segregation consultants, Corporate Tax Advisors has assisted clients across the nation in obtaining the tax benefits of cost segregation.
What Is Cost Segregation?
The 1993 Tax Act extended the depreciable life of real property from 31.5 to 39 years. However, proper classification allows real estate holders to accelerate depreciation schedules and thus the present tax benefit.
Taxpayers who properly classify their construction or acquisition costs between real and personal property can achieve substantial tax and cash flow savings.
The result is that every $1,000,000 of personal property produces a present value tax benefit of approximately $220,000, making real estate cost segregation a strategic tax tool.
Accelerated Depreciation
Depreciate assets faster, increasing cash flow and reducing tax liability. Cost segregation studies are a powerful tool for businesses looking to maximize their tax savings and improve their overall financial performance.
Significant Tax Savings
By identifying shorter-life property components within a building or facility, a cost segregation study can unlock significant tax benefits. These components, such as electrical systems, plumbing, and specialized equipment, can be depreciated over a shorter time frame, leading to accelerated deductions and increased cash flow.
Competitive Advantage
Implementing a cost segregation strategy can have a profound impact on your bottom line. Not only does it reduce your current tax burden, but it also frees up capital that can be reinvested into your business, fueling growth and expansion.
Who Benefits from a Cost Segregation Study?
Both businesses and individuals who have built, bought, or improved any type of income generating real estate can use a cost segregation study to shorten the depreciation schedule of various “segregated” assets, sometimes called “Cost segregation categories.”
Depreciation acts as an expense against taxes owed so extra cash flow is created via rental property cost segregation.
How to Work with Our Cost Segregation Consultants
A Cost Segregation Study breaks down your construction or acquisition costs and allocates them to specific categories – maximizing accelerated depreciation for qualifying building components. The shorter the depreciation period, the greater your tax savings. This study could also be used to increase your sales tax exemptions, lower your property taxes, and provide the basis for your property records system.
While there are some people who attempt to do DIY cost segregation, the level of complexity is high. Our group of cost segregation consultants and construction experts will correctly process your building plans for immediate tax savings using methodologies found in this handy IRS Cost Segregation Guide.
To find out what the potential benefits of a study are, simply schedule a free call with one of our cost segregation partners using the scheduler above.
Your On-Site Cost Segregation Study
Using modern real estate scanning technology in partnership with IPX, we’re able to complete your cost segregation study with just a single site visit.
Once your property is scanned, our team of engineers and accountants get access to the data in the cloud and start their work.
We’re excited that we can minimize disruption for our clients and their tenants.
Shorter Life Property: Tangible Personal Property
Millwork
Cabinetry, countertops, trim, & flooring.
Kitchen Appliances
Refrigerators, stoves, ovens, and other kitchen equipment.
Decorative Lighting
Track lighting, wall sconces, pendant lights, & chandeliers.
Is Cost Segregation Worth It?
We provide risk-free cost segregation consultations. Feel free to reference some cost segregation report examples as well.
Simply schedule a call at your convenience.
We’ll be happy to talk you through the potential effective benefit of our cost segregation services. Keep in mind that we only bill at completion of our filings, so our services pay for themselves.
Debunking Common Myths About Cost Segregation Services
“It’s only for large corporations.“
False. Cost segregation benefits private building owners of all sizes, from small business owners to family investors.
“It’s too expensive to conduct a study.”
False. The cost of a study is often outweighed by the tax savings it generates. Many building owners see a return on investment within the first year.
“It’s too complex.”
The cost of a study is often outweighed by the tax savings it generates. Many building owners see a return on investment within the first year.
Shorter Life Property: Land Improvement
Landscaping & Site Preparation
Grading, paving, walkways, and landscaping.
Fences, Gates, and Walls
Perimeter fences, gates, retaining walls, and decorative walls.
Decorative Lighting
Asphalt, concrete, and other parking surfaces.
A Cost Segregation Study: Your Access to the Financial Benefits
With our team of tax credit specialists, you get one point of contact who communicates with you throughout the process.
Behind the scenes, our team of accountants, engineers, and attorneys crunch numbers in a cost segregation study. When complete, you’ll understand exactly what savings are available to you at both state and federal level. You may find this article on real estate cost segregation helpful if you’re looking for more specific examples of what drives the study.
We only invoice once your available benefit is calculated and ready for filing via your primary CPA.
How CTA Performs Cost Segregation Studies
Comprehensive Analysis
Our team thoroughly reviews building plans, construction records, and other documentation to understand the full scope of your property. This in-depth analysis allows us to identify all potential areas for tax savings.
Detailed Allocation
We carefully identify and allocate costs to different property classes based on IRS guidelines. This ensures that every eligible component is classified correctly to maximize your depreciation deductions.
Customized Report
Upon completion, we provide you with a detailed report that breaks down the costs and depreciation schedules for your property.
Does a cost segregation study sound complex? It is a bit complex, but our cost segregation team makes the process painless. Schedule a risk-free introductory call at your convenience.
Note: We are happy to talk through other tax credit and incentive programs for which you may qualify including 179d Green Energy, Clean Energy tax credits, R&D tax credits, and other programs. If we find you are eligible for more than one program, our team of tax credit experts will be happy to run multiple studies simultaneously.
Some Representative Examples of Our Cost Segregation Study & Tax Credit Work
Service: Cost Segregation
Property: Luxury Apartment Building
Location: Miami, FL
Background: Private investor purchased a $10M luxury apartment building and immediately commissioned a study.
Result: The analysis reclassified over $3M of the building’s components including high-end appliances, decorative lighting, and premium flooring into shorter depreciation schedules. In the first year alone, the owner realized tax savings of $850k, which was reinvested into upgrading common areas and installing a rooftop pool, enhancing tenant satisfaction and boosting property value.
Service: Cost Segregation
Property: Boutique Retail Store
Location: Dallas, TX
Background: A retailer purchased a store for $1.5M and renovated it.
Result: A cost segregation study identified over $400,000 in qualifying improvements, including shelving, specialized lighting, and parking lot enhancements. This accelerated depreciation provided $125,000 in tax savings, enabling the owner to expand inventory and invest in local marketing campaigns to drive foot traffic.
Service: Cost Segregation
Property: Engineering
Location: Scottsdale, AZ
Background: A family-operated hotel decided it was time for a renovation.
Result: A cost segregation study identified over $400,000 in qualifying improvements, including shelving, specialized lighting, and parking lot enhancements. This accelerated depreciation provided $125,000 in tax savings, enabling the owner to expand inventory and invest in local marketing campaigns to drive foot traffic.
Service: Cost Segregation
Property: Engineering/Planning
Location: New York, NY
Background: A $5M medical office building was acquired to expand a practice.
Result: The study uncovered $1.2 million in qualifying assets, including specialized electrical systems and patient-specific improvements like exam room cabinetry. These findings yielded $300,000 in tax savings, allowing the physician group to purchase cutting-edge diagnostic equipment and expand patient services.
Professional Recognition
Our firm is recognized as one of the leading specialty tax advisory firms in our industry throughout the nation. Our cost segregation services combine our expertise, experience, and the energy of our staff, so each client receives close, personal, enthusiastic, and professional attention.
Our high standards, service, and specialized staff make all the difference when comparing CTA to other firms. We make sure that every client is served by the expertise of not only their personal account manager, but our entire firm.
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Complex Tax Credit & Incentive Matters: What Your Business Needs to Know
Founder & CEO Mike Woeber Talks CTA Culture & How We Partner with Accounting Firms to Ensure Amazing Results for Clients
“I spent 24 years in public accounting…and during that time, I saw a need for very specialized services. Things that you would think a CPA firm would do, but they are not really staffed up for or have the right personnel to do….We want our employees to do two things:
We want them to do a very defendable and solid credit incentive delivered to the client.
And we also want them to be sure the client is happy while we do it.”
Schedule Your Consultation Partner with CTAOur Mission:
To educate and advise our clients of tax incentives in a Collaborative, Timely, and Accurate manner.
Our Cost Segregation Process Pays for Itself:
Step #1: INTRO CALL
Evaluate Your Property & Estimate Potential Savings via a Free Feasibility Study
You choose a convenient time on our availability calendar for us to ask you some basic questions about your real estate and determine whether or not you are a candidate for our cost segregation services.
Our experts will assess your building’s type, size, and original cost basis to determine the best opportunities for cost segregation and accelerated depreciation.
Based on our in-depth analysis, we’ll provide you with a detailed estimate of the tax savings you could realize through a cost segregation study.
Step #2: RESEARCH & PREPARATION
Run the Detailed Study & Analysis
Working in unison with your team & your primary accounting firm, we gather all the data about each property and make the calculations that determine the value of the credits or incentives as required by law.
Step #3: COMPLETION
Complete the Filing & Receive the Credit
Once we determine the credits available and have everyone’s approval, we prepare the filings for submission by your firm (along with other filings you/they may be handling) and invoice for our services.
