| "I have already completed a cost segregation study." | ||
| Did you specifically hire an appraiser or engineer to breakout the costs? | ||
| "The IRS doesn't allow a cost segregation study." | ||
| Many people confuse cost segregation studies with component depreciation, which was abolished by the IRS beginning in 1987. In fact, the IRS requires a study take the proper depreciation. | ||
| "A cost segregation study will increase our chances of being audited." | ||
| Only if we take deductions we shouldn't. Generally less than 1% of returns are audited. Over 200 IRS court cases and rulings support cost segregation studies. The most recent was Hospital Corp. of America. | ||
| "It won't save me any money." | ||
| Yes, it will! If you pay taxes, you save. | ||
| "I'll get the deduction in the future anyway." | ||
| You can have the cash now to reinvest or meet current needs! The present or future value of money is usually substantial. | ||
| "I am in an alternative minimum tax (AMT) situation." | ||
| A cost segregation study reduces alternative minimum taxes because alternative minimum tax depreciation is accelerated when a study is completed. | ||
| "I'll owe taxes when I sell the building." | ||
| You will owe them anyway, except your deductions will be at ordinary rates and a majority of the taxes due on sale will be at capital gain rates. This is a permanent tax difference of 16% at the highest marginal tax rates. | ||
| "I am out of luck because the building was constructed or acquired in prior years." | ||
| Special provisions enacted by the IRS allow you to "catch-up" on any missed depreciation for any buildings built or acquired since 1987. No amended returns are required. | ||
- Department Stores
- Shopping Malls
- Distribution Centers
Manufacturing
Restaurants
- Fast Food
- Dining
Financial Services
- Brokerages
- Banks
Public Utilities
Airports
Sports Facilities / Health
Apartment Complexes
Office Complexes
Hospitality
- Hotels / Motels
- Golf Ranges
- Resorts
Pharmaceutical
Health Care Services
- Physician Practices
- Medical Centers
- Care Facilities
Professional Services
