Cost Segregation Studies

The primary purpose of conducting a cost segregation study is to accelerate federal and state depreciation income tax expense deductions to significantly increase the current cash flow for owners of real property. A cost segregation study maximizes the depreciation tax benefits of real property by identifying, re-classifying, and segregating shorter-lived personal property (for example, flooring, window coverings, dedicated electrical and plumbing, site improvements) from longer-lived real property. Cost segregation studies can also generate substantial property and transfer tax savings and real property insurance savings.

Fidel Martinez, CPA, PC conducts cost segregation studies for existing, remodeled, newly constructed, or currently being developed real properties. The undertaking of a cost segregation study can be beneficial for owners of both residential and commercial real property.

Fidel Martinez, CPA, PC employs a team approach to conducting cost segregation studies. All members of the team, including accounting, tax, and construction project management. All members have many years of experience in their particular fields of expertise.

Owners of the following types of real property are ideal candidates to recognize significant tax and cash flow benefits from conducting a cost segregation study:

Manufacturing facilities
Warehouses
Office buildings
Apartment buildings
Retail stores
Restaurants
Laboratories

All of the accelerated income tax depreciation expense deductions resulting from undertaking a cost segregation study are taken in full accordance with all applicable laws, guidance and Internal Revenue Code provisions.

Fidel Martinez, CPA, PC conducts all facets of a cost segregation study, commencing with an analysis of the real property, including the property site visits and segregation analysis, calculation of all depreciation adjustment amounts, filing of all required forms with the Internal Revenue Service, and concluding with the issuance of a full-detailed cost segregation study report, which the client keeps to document their accelerated depreciation expense deductions.