COST SEGREGATION DEFINED

Cost Segregation is an engineering-based cost analysis of new or existing projects for the purpose of accelerating depreciation expense for federal income tax purposes.

The existing building(s) on your balance sheet – or the property you just acquired or renovated – may generate more cash flow benefits than most companies realize. That’s because short-lived assets buried in construction or acquisition costs are often hidden, failing to save you as much as they should in income taxes. Enhancing your bottom-line profitability with “cost segregation” studies can be a potent tool, bringing to light substantial tax savings made possible by accelerated depreciation of these hidden assets.

QUALIFICATIONS

The following questions can help you determine whether you could benefit from a DASI cost segregation study:

  1. Do you own commercial property or leasehold improvements constructed or purchased since January 1, 1990?
  2. Are you paying federal income taxes? If not, then...
    1. Have you paid income taxes in the past five years that you would like to have refunded?
    2. Would you like to reduce your income tax liability significantly over the next 5 to 10 years?
  3. Would you like to improve your cash flow by accelerating tax depreciation deductions, which are entirely allowable under current tax laws?

Although any non-residential commercial property may qualify for substantial tax deferral and cash flow benefit, the following list is a representative sampling of property types with a high probability of significant cash flow benefit:

Restaurants Manufacturing Facilities Retail Facilities
Hospitals Office & Industrial Buildings Airport Hangers
Hotels Golf Courses & Country Clubs Grocery Stores
Dealerships Capitalized Leaseholds Multi-family Properties

EXAMPLES

DASI can help you achieve Substantial Tax Savings Benefits if you have done one of the following:

  1. Purchased a commercial building or facility.
  2. Constructed a new commercial building or facility.
  3. Renovated, remodeled, restored or expanded an existing building or facility.
  4. Paid for office or facility leasehold improvements.
  5. Owned a commercial facility that was purchased or improved after January 1, 1990.