Cost Segregation Studies

Cost Segregation Services

A Cost Segregation Study is a process approved by the IRS that expedites depreciation on a building. Find out how MS Consultants can potentially save you thousands of dollars in tax deferments.

Cost Segregation study

What is a Cost Segregation Study?

A cost segregation study allows real estate owners to break down the capitalized costs of their buildings and identify building costs that can depreciate over much shorter periods of time. Non-structural elements of buildings, for example, may be depreciated over five to fifteen years. It makes sense logically: your carpet isn’t going to last for forty years, why should it depreciate over that period of time?

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Benefits of a Cost Segregation Study

Cost segregation works upon the same principle as most other sound tax planning: by decreasing current income and thereby deferring taxes to a later tax period, you can gain financially due to the time value of money. Put as simply as possible, a tax deduction today is worth more than a tax deduction next year, and worth a great deal more than a tax deduction thirty years from now.

What Does Cost Segregation Mean for Me?

If you or your client own substantial commercial real estate, it could mean hundreds of thousands, if not millions, of dollars in tax deferments. It means a substantial influx in available cash thanks to decreased tax burden.

An engineering-based study conducted by MS Consultants, provides a clear set of documentation in the case of an audit. Improper cost and asset documentation can cause all sorts of headaches: with the thorough, quality report prepared by MS Consultants, any IRS inquiries can be resolved at the earliest stages.

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How Can I Learn More?

You can check out our page exploring the IRS’s Cost Segregation Audit Techniques Guide or you can contact one of our consultants with any questions you have, and find out how you or your clients can benefit from working with MS Consultants.

Let’s Get Started.

Contact us today to find out how we capture extraordinary tax benefits for all types of entities.