Cost segregation studies have become an increasingly valuable tax tool that should be given serious consideration by taxpayers who are in the business of owning, constructing, renovating, or acquiring real estate facilities.  Cost segregation studies utilize an engineering-based approach that assists companies and individuals to properly classify the investments made in buildings in order to reduce their taxable income with accelerated depreciation, which ultimately results in improved after–tax cash flow.  Cost segregation is the most accurate way to depreciate improved commercial property and saves taxes not only immediately, but also in the future. 

Watkins Uiberall’s cost segregation studies allow you to safely increase cash savings by accelerating depreciation deductions of assets that are normally imbedded in a building’s construction or acquisition costs.  To ensure our cost segregation studies produce optimal results, we provide full documentation and employ engineering and cost-estimating procedures according to the most current IRS rulings, tax law, and judicial decisions.

Taking advantage of cost segregation studies can result in a broad range of benefits for small to mid-size businesses, some of which include the following: