Cost Segregation Studies

Whatever your real estate assets: new construction, recent acquisition, improvements to an existing structure or leasehold improvements, there are substantial tax benefits that can be gained through Cost Segregation Studies. And more specifically, the tax benefits that can be realized by utilizing a nationally recognized firm that specializes in cost segregation can be much greater than a study done by a CPA with little or no cost segregation experience.

Cost Segregation Generated Cash Flow

Every real estate project is unique, and no two Cost Segregation Studies are exactly alike. However, with over 12,000 studies under our belt, we've got a good idea of what to expect. Here are the average ranges of savings our clients can expect to generate from a $2 million building of a given type.

Cash flow generated over a five-year period, assuming a 40% tax bracket and an 6% discount rate.

At its most basic, cost segregation is a breakdown of all assets associated with a building—from the drainage and utility systems beneath the parking lot to the roof structure, and everything in between. It’s a way to more accurately measure the depreciation of real property for tax purposes, and can even recapture depreciation that’s been “missed” since 1987. By conducting cost segregation studies, real estate owners and tenants are able to significantly reduce their short-term tax payments. Check out Cost Segregation 101 to learn a little more about the history, the process, and the benefits of cost segregation.

There are plenty of firms offering cost segregation studies. What separates MS Consultants from the rest is our engineering-based approach to cost segregation. The approach adopted by MS Consultants is recognized by the IRS as the “the most methodical and accurate approach,” giving our clients two distinct advantages:

  • Much greater potential tax savings over other, less thorough approaches. We routinely find additional savings for clients over what our competitors’ cost segregation studies have found, because our consultants have decades of construction and engineering expertise and the backing of nationally-recognized tax experts. And as the IRS' audit guidelines say, “a study conducted by a construction engineer is more reliable than one conducted by someone with no engineering or construction background.”
  • Because our studies are so much more thorough, they withstand audit scrutiny much more easily than studies conducted with less methodological integrity. Our studies have undergone audits with outstanding results and often the rigor of our studies is enough to head off IRS inquiries at the earliest stages. We’re so confident in our studies, in fact, that as part of our 3R Approach, we offer audit support for all of our cost segregation studies.

Take a few minutes to learn a little more about cost segregation, and our unique 3R Approach to studies, which gives our clients the peace of mind of knowing their studies are being conducted with the utmost attention to detail. Read about our Turnkey Process, which relieves our clients of much of the burden of the study: we take care of every possible aspect of the project and at the end turn over an actionable study, ready to produce significant tax benefits. Learn a little more about what goes into our reports and how our studies differ from our competitors’.

And, if you’d like to learn a little more about what a cost segregation study can do for you or your real estate clients, check out our cost segregation calculator for a quick and easy estimate. After that, contact one of our consultants to find out just how much more our team of experts can do for you.