Cost segregation simply classifies commercial property assets into each appropriate life-class (5-, 7-, 15-, or 39-years). If an architect takes into consideration “how” a building is designed with federal income tax consequences in mind, at least two things would occur. The first is the project in question would become more cost effective to the owner/client.…
Cost Segregation Study Results Segregation Holding Limited (SHL) completed a cost segregation study on a small grouping of bank-owned REOs with a value of $33.8MM. SHL’s engineers were able to reclassify 39.2% of the 39-year assets to 5- and 15-year assets…this resulted in an additional $13.25MM in depreciation over the first five years of ownership.…
We completed a cost segregation study on a Walgreens property in a NNN lease situation. It has over 15,000 s.f. with 22 of 25 years remaining on their lease. We reclassified 21.7% of the property from 39-year to 5- & 15-year asset categories…this gave the client over $400,000 in after-tax cash, reduced the real estate…
Can cost segregation save the commercial real estate market? It is estimated there is over $5.3 Trillion in commercial real estate in America. It could have a huge impact on the US market if cost segregation were implemented on just 10% of these properties. By accelerating the available depreciation sitting in those assets, an additional…
Joseph V. Scorese shared on LinkedIn what he constitutes as the perfect commercial real estate loan package…it included these 7 items: 1) Make sure your two most previous years – both personal and business – tax returns are complete and filed 2) Prepare year-to-date personal financial statements and business operating statements – no more than…
We just completed a study for a dental practice that just constructed a 3 story, mixed-use facility. It has 22,500 s.f. and tax-basis of $3.98MM. After completing our site analysis and reviewing all AIA data and construction drawings, we re-classified 33.6% of the building’s assets from 39-year SL depreciation to 5- and 15-year MACRS depreciation.…
In a word, happily…yes…but let’s investigate the “how!” HOK, arguably the world’s largest architectural firm, and The Weidt Group, a leading energy and daylighting consulting firm, joined forces in team design and wit to find out if today’s technology, materials and systems could do just that. “A building that produces and exports at least as…
I’m curious, would it have made sense for Peco to have created a holding company, sold the assets to the new company and then performed a new cost seg study? A new tax-basis would then be in place and qualify for a new study…any ramifications to that I’m missing? Seems to me a lot of…
My initially thought is this could mean trouble to a firm doing a PPA study with cost seg “after the fact” if assets are not specifically identified in the buy-sell agreement or corresponding document. This is precisely why cost segregation professionals should be engaged at the outset, if for no other reason, to simply consult…
Can a cost segregation study apply to buildings or leasehold improvements not yet constructed? Yes! A cost segregation study can literally begin at the concept phase long before plans are drawn. The study could be completed, 1) once the Certificate of Occupancy is issued and, 2) the final tax-basis is ascertained from the final AIA…
If you own Commercial Property, including leasehold improvements or rental houses, that was damaged or destroyed by the recent natural disasters, we can help you maximize your Federal tax benefits, saving you tens of thousands of dollars. You must act now before rebuilding. FREE consultation and benefit analysis. It’s your money, why wait.
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