Unlock Your Hidden Capital
Cost Segregation Studies are a strategic tax planning strategy that identifies fixed assets and their expenses in order to optimize federal income tax depreciation deductions. It’s a frequent tax planning method that also serves as a clever way to boost cash flow by hastening the depreciation of commercial building expenses.
This engineering-based analysis provides you with a precise tax strategy to accelerate property depreciation and help you save money on any new, remodeled, or bought real estate. It enables the categorization of real and personal property into acquisition/construction expenses, which are subsequently applied to the relevant IRS tax credit.
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A Guide on Leveraging Cost Segregation Study
for Your Projects
Cost Segregation Studies are a strategic tax planning strategy that identifies fixed assets and their expenses in order to optimize federal income tax depreciation deductions.
We’ve Saved Our Clients
MILLIONS
Through a cost segregation study, properties can be reclassified from a standard 39-year depreciable life to a 5, 7, or 15-year depreciable life, which enhances federal tax credit savings, and improves cash flow. Building and property owners are also able to retrieve missed deductions from previous years.
Almost any property from any company or industry can benefit from a Cost Segregation Study. The National Tax Group has performed Cost Segregation Studies for a variety of industries over the last 20 years and has saved our clients millions in tax incentives. If your business owns property, chances are you can increase your cash flow with this tool.
Businesses like restaurants, hotels, apartment buildings, and commercial property have the most to gain from a cost segregation study. These businesses typically have the most lucrative outcomes from utilizing this tax tool.
We help owners across several key industries
Frequently Asked Questions
A Cost Segregation Study can reclassify properties from a typical 39-year depreciable life to a 5, 7, or 15-year depreciable life, increasing federal tax credit savings and improving cash flow. Building and property owners can also recover unclaimed deductions from past years.
The study includes:
- On-site auditing service benchmarking
- Documentation as per IRS guidelines
- Tax deduction strategies
- Appropriate allocation of all indirect costs
- Identifying substantial amounts of accelerated depreciation
- KPI measurement
- Legal compliance
- Final reports for easy-to-use data for tax planning
Almost any property from any company or industry can benefit from a Cost Segregation Study. The National Tax Group has performed Cost Segregation Studies for a variety of industries over the last 20 years and has saved our clients millions in tax incentives. If your business owns property, chances are you can increase your cash flow with this tool.
A property is eligible for a Cost Segregation Study at any time before, during, and after a remodel or construction of a property. Through our experience, the National Tax Group recommends that the ideal time to complete a study is during the first year a building is constructed, purchased, or remodeled. However, a cost segregation can almost always benefit a building owner. For those who are in the works with an architect and are planning a construction or remodeling, the best time to perform a study with us is before the building is set.
- Construction of new buildings
- Renovation or expansion of existing buildings
- Purchase of a building
- Renovation of a leased building
Why choose National Tax Group’s Cost Segregation Services?
With the combined expertise of engineers, construction specialists, and accounting professionals, we can handle complex and time-sensitive cost segregation studies. Our main objective is to facilitate maximum tax savings and improve cash flow.
There are many projects that business owners, companies, and individuals can do in order to speed up depreciation deductions.
A property is eligible for a cost segregation study at any time before, during and after a remodel or construction of a property. Through our experience, National Tax Group recommends that the ideal time to complete a study is during the first year a building is constructed, purchased or remodeled. However, a cost segregation can almost always benefit a building owner. For those who are in the works with an architect and are planning a construction or remodeling, the best time to perform a study with us is before the building is set.
Our analysts and accountants will thoroughly evaluate your assets. Then a licensed deduction calculator is used to identify assets that will be segregated. Once the site visitation procedure is complete, the study will take up to 4 weeks to complete.
Projects that are ideal for Cost Segregation Studies include:
- The construction of new buildings
- The renovation or expansion of existing buildings
- The purchase of a building
- The renovation of a leased building
For federal income tax purposes, building costs are classified into 3 main types:
- Tangible property
- Land improvements
- Real property
How do Cost Segregation Studies work?
- On-site auditing Service benchmarking
- Documentation as per IRS guidelines
- Tax deduction strategies
- Appropriate allocation of all indirect costs
- Identifying substantial amounts of accelerated depreciation
- KPI measurement
- Legal compliance
- Final reports for easy-to-use data for tax planning
TESTIMONIALS
What Our Clients Are Saying
We are excited to announce that after years of legislation
179D & 45L have been extended
Lighting
Interior & Parking Garages
.60¢ Per Sq. Ft.
HVAC
Heating, Cooling, Ventilation and Hot Water
.60¢ Per Sq. Ft.
Building Envelope
Envelope Systems, Windows, Doors, Roofs and Insulation
.60¢ Per Sq. Ft.
179D Qualification Requirements
179D Qualification Requirements
| Properties Placed in Service 2023-2032 | ||||
|---|---|---|---|---|
| Project Tier | Bonus Requirements | Energy Savings | Base Deduction | Max Deduction |
| Base Tier | None | 25-50% | $0.50/sqft | $1.00/sqft |
| Bonus Tier | Prevailing Wage and Apprenticeship Program | 25-50% | $2.50/sqft | $5.00/sqft |
| Properties Placed in Service 2006-2022 | ||||
|---|---|---|---|---|
| Qualifying Components | Estimated Tax Deduction | |||
| Before 2021 | 2021 | 2022 | ||
| Fully Qualified Property | $1.80/sqft | $1.82/sqft | $1.88/sqft | |
| Partially Qualified Property | Envelope | $0.60/sqft | $0.61/sqft | $0.63/sqft |
| HVAC | ||||
| Lighting | ||||
We are excited to announce that after years of legislation
179D & 45L have been extended
Lighting
Interior & Parking Garages
.60¢ Per Sq. Ft.
HVAC
Heating, Cooling, Ventilation and Hot Water
.60¢ Per Sq. Ft.
Building Envelope
Envelope Systems, Windows, Doors, Roofs and Insulation
.60¢ Per Sq. Ft.
179D Qualification Requirements
179D Qualification Requirements
| Properties Placed in Service 2023-2032 | ||||
|---|---|---|---|---|
| Project Tier | Bonus Requirements | Energy Savings | Base Deduction | Max Deduction |
| Base Tier | None | 25-50% | $0.50/sqft | $1.00/sqft |
| Bonus Tier | Prevailing Wage and Apprenticeship Program | 25-50% | $2.50/sqft | $5.00/sqft |
| Properties Placed in Service 2006-2022 | ||||
|---|---|---|---|---|
| Qualifying Components | Estimated Tax Deduction | |||
| Before 2021 | 2021 | 2022 | ||
| Fully Qualified Property | $1.80/sqft | $1.82/sqft | $1.88/sqft | |
| Partially Qualified Property | Envelope | $0.60/sqft | $0.61/sqft | $0.63/sqft |
| HVAC | ||||
| Lighting | ||||
We are excited to announce that after years of legislation
179D & 45L have been extended
Lighting
Interior & Parking Garages
.60¢ Per Sq. Ft.
HVAC
Heating, Cooling, Ventilation and Hot Water
.60¢ Per Sq. Ft.
Building Envelope
Envelope Systems, Windows, Doors, Roofs and Insulation
.60¢ Per Sq. Ft.
179D Qualification Requirements
179D Qualification Requirements
| Properties Placed in Service 2023-2032 | ||||
|---|---|---|---|---|
| Project Tier | Bonus Requirements | Energy Savings | Base Deduction | Max Deduction |
| Base Tier | None | 25-50% | $0.50/sqft | $1.00/sqft |
| Bonus Tier | Prevailing Wage and Apprenticeship Program | 25-50% | $2.50/sqft | $5.00/sqft |
| Properties Placed in Service 2006-2022 | ||||
|---|---|---|---|---|
| Qualifying Components | Estimated Tax Deduction | |||
| Before 2021 | 2021 | 2022 | ||
| Fully Qualified Property | $1.80/sqft | $1.82/sqft | $1.88/sqft | |
| Partially Qualified Property | Envelope | $0.60/sqft | $0.61/sqft | $0.63/sqft |
| HVAC | ||||
| Lighting | ||||