The 1993 Tax Act extended the depreciable life of real property from 31.5 to 39 years. 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.

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.

Our group of tax professionals and construction experts will correctly document your building plans for immediate tax savings. Please contact Michael Royster at michaelr@corpratetaxadvisors.com to learn more about how you can accelerate your construction and acquisition tax savings.