What is Cost Segregation?

Maximize Your Tax Savings with Our Cost Segregation Studies

Unlock significant tax savings and improve cash flow with Cost Segregation Studies from Walter O’Connell Tax Services LLC. Our engineer-based studies offer a comprehensive analysis of individual assets in commercial real estate transactions, allowing for accelerated depreciation schedules and higher tax deductions in the early years of property ownership. By keeping more dollars in your business, you can reinvest in growth, expand operations, and enhance your financial position.

With our experienced team of professionals, we conduct thorough property documentation reviews, perform on-site inspections, and collaborate with engineering experts to ensure accurate asset classification. Our goal is to optimize your tax position by accelerating tax deductions and reducing your overall tax liability. By leveraging the benefits of Cost Segregation Studies, you can maximize your tax savings, increase your bottom line, and achieve your business goals.

Partner with Walter O’Connell Tax Services LLC to take advantage of our expertise in Cost Segregation Studies. Let us help you navigate the complexities of tax regulations and tailor our services to meet your specific needs. Together, we will unlock the potential of your commercial real estate investments and pave the way for long-term financial success.

What Does a Cost Segregation Study Look for?

When a property is purchased, it includes the building structure and the improvements on the land. Most often, 18% to 50% of those components fall into tax categories that have smaller tax lives than the building structure and can accordingly be depreciated more quickly. A Cost Segregation study analyzes the property based on its historical costs that typically would be depreciated over 27 ½ or 39 years. The purpose of a Cost Segregation study is to identify properties that can be depreciated over 5, 7, and 15 years. For example, electrical and plumbing connections supporting equipment like appliances, office equipment, or manufacturing equipment should be depreciated over 5 years.