Fair Market Valuation
Purchase Price Allocation
Fixed Asset Registers
Useful Life Studies
Cost Segregation Analyses
Machinery and Equipment Appraisals
Asset Divestitures
Audit Support
Bankruptcy Valuation and Support
Business Interruption Consulting
Business Valuations
Construction Cost Analyses
Construction Management Oversight
Discounted Cash Flow Analyses
Due Diligence Reviews
Expert Testimony
Feasibility Studies
Financial Modeling
Forensic Analyses
Insurance Appraisals
Land Appraisals
Lease Analyses
Litigation Support
MACRS Categorizations
Maintain Property and Asset Records
Management and Strategy Consulting
Market and Industry Analyses
Orderly and Forced Liquidation Studies
Placed-In-Service Determinations
Power Plant and Utility Appraisals
Rehabilitation Tax Credit Studies
Sales and Use Tax
Structured Finance Valuations
Tangible and Intangible Asset Valuations
Tax Engineering Studies
Transfer Tax Reporting
USPAP Appraisal Reviews

Cost Segregation Analyses

A cost segregation study typically relates to new construction, leasehold improvements and / or renovation projects. This study will assist clients in recovering investments in capital expenditures by minimizing Federal and local taxes.

The most powerful savings is generated by the proper classification of both direct and indirect costs in the appropriate Modified Accelerated Cost Recovery System (“MACRS”). Capital expenditures made for a certain component of clients business may be accessorial or multi-functional. If this is the case, there may be an opportunity to reclassify a portion of the costs from a 39-year depreciable life to a shorter, more accelerated 5-year, 7-year, or 15-year MACRS class life.

Although segregating assets does not eliminate taxes owed, it does defer them to future years resulting in current tax savings right now. Assuming certain typical parameters, each $1,000 of assets reclassified from a 39-year life to a 5-year MACRS class life will result in a savings of approximately $200 per $1,000.

Key Benefits

  • Improved cash flow
  • Minimizes business taxable income


Our Locations

Maryland:
6500 Rock Spring Drive, Suite 200 • Bethesda, MD 20817 • (301) 571-1900 • Fax (301) 571-1932
New Jersey: 5 Professional Circle, Suite 208 • Colts Neck, NJ 07722 • (732) 780-4100 • Fax: 732-780-6020

.© Copyright 2003 Grossberg/MPS Valuations LLC. All rights reserved


 

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