We say that our engineering-based approach to cost segregation is more thorough and effective than any other method, and we've got the track record to back it up. Our construction engineers and specialists bring over 100 years of combined experience to the table and are backed by nationally-recognized tax experts. When our expertise is applied with our methodology, the results are the most in-depth cost segregation studies available.
That’s why we’ve been retained by real estate clients to correct oversights and errors made by our national competitors in their cost segregation studies. We’ve saved our clients tens of millions of dollars over our competitors thanks to the simple fact that our studies are more thorough. And again: these additional savings are not additional audit risks: as our engineering-based approach is the preferred cost segregation method of the IRS, our studies hold up exceedingly well in audits. They perform so well, in fact, that we offer audit support free with every study as part of our 3R Approach.
Here are just a few examples where we were able to help our clients realize additional savings over our competitors:
For a $3.5 million nursing home complex, we reviewed a study completed by another national accounting firm. We found a wide range of assets missing from their report, from obvious items such as VCT and wallpaper to more technical items such as electrical panel box allocations. Thanks to our careful review, we were able to help our client realize an additional $29,000 in savings over our competition.
Garden Style Apartment Complex
For a typical garden-style apartment complex worth $16 million, we reviewed a study completed by a large national accounting firm. By re-examining the property and applying our engineering-based method to the property, we were able to segregate an additional $3.3M of assets. This led to an additional tax savings to the client of over $526,000.
A client asked us to review the study conducted on a large, $90 million retail and office building. A national cost segregation firm had conducted a study in which they made several mistakes regarding real estate income tax law—which would have cost the client significantly in an audit. During our review, we not only segregated an additional $6.5 million worth of assets over the initial study, but we corrected all tax law mistakes and produced a final report that would stand up to even the most rigorous scrutiny from the IRS. And in doing so, we provided an additional $1.3 million in tax savings for our client.
We were hired by an investment partnership to evaluate a study performed by one of the largest national accounting firms on a hotel chain. Again, the thoroughness of our engineering-based method, combined with our in-depth tax knowledge, reaped significant benefits for our clients. We were not only able to improve the study, but also corrected significant errors, such as land understated by $5 million. All told, thanks to our recommendations, our clients were able to realize an additional $9 million in tax savings over the initial study.
If you’d like to learn more about how MS Consultants may be able to help you or your real estate clients—or, if you’d like a free review of your existing cost segregation study to see if there are additional savings that have yet to be found—contact MS Consultants today.