Fair Market Valuation
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Fixed Asset Registers
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Cost Segregation Analyses
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Asset Divestitures
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MACRS Categorizations
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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

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