Cost Segregation

Cost Segregation is a commonly used strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.

When a property is purchased, not only does it include a building structure, but it also includes all of its interior and exterior components. On average, 20% to 40% of those components fall into tax categories that can be written off much quicker than the building structure. A Cost Segregation study dissects the construction cost or purchase price of the property that would otherwise be depreciated over 27 ½ or 39 years. The primary goal of a Cost Segregation study is to identify all property-related costs that can be depreciated over 5, 7 and 15 years. For example, certain electrical outlets that are dedicated to equipment such as appliances or computers should be depreciated over 5 years.

KBKG goes beyond a traditional Cost Segregation study and will also separate all of the different building structural components (such as the roof, windows or HVAC units) so when they are replaced, a loss deduction can be claimed on them. For leased property, we also separate tenant leasehold improvements.

Cost Segregation Savings Calculator (FREE)

The Cost Segregation Savings Calculator estimates your federal income tax savings and provides:

  • Estimated allocation to 5, 7, 15, and real property
  • Tax deductions and additional cash flow by year
  • Net present value over 10 years and over the life of the property

Enter basic building info and instantly receive the estimated tax savings.


KBKG Advantage

Discover why so many companies and accounting firms rely on KBKG for their tax incentive, credit and deduction planning needs.

As one of the premier service providers in the industry, we are passionate about helping business owners and accounting professionals across the country identify, claim and—when needed—defend their tax savings strategies. Our KBKG Advantage is the reason why clients turn to us time and time again for assistance. For superior teamwork, tailored service, and assurance backed by our KBKG Audit Guarantee, you can rely on KBKG. Learn more...

Cost Segregation Experts

By providing building details, we can determine if your property will benefit from a Cost Segregation Study.

Upcoming Webinars

Bonus Depreciation Update & Cost Segregation
6/29/201711:00am Register
Cost Segregation Software Tools & Tax Strategies
7/25/201710:00am Register
Introduction to Cost Segregation
7/26/201711:00am Register

Calculate Benefits

Use our free calculator to estimate potential benefits.

CALCULATE

FAQs & Resources

Find out what's involved with a study and more.

FAQs

Cost Segregation Benefits

Many business owners are surprised to learn of the compelling tax savings a cost segregation study offers. Below is a list of three of the most prominent benefits.

Cash Flow

Generates immediate increase in cash flow through accelerated depreciation tax deductions

Write Off

Quantifies property’s major components and leasehold improvements so they can be written off when replaced or renovated

Review

Provides an independent third-party analysis that will withstand IRS review.

Is a Cost Segregation Study Right for You?