Accounting & Tax News

:: Jason Saladino, CPA, PFS, Partner
631.425.1800 ext. 309
G.R. Reid Associates, LLP

The Benefits of Cost Segregation

Increase Your Return On Investment
Over 300 rulings, letters and IRS Memoranda have provided documentation and significant case law for the support of Cost Segregation Studies. Hospital Corporation of America vs. The Commissioner is one of the landmark decisions which gave support to the way we review and analyze properties to determine the tangible personal property that may qualify for depreciated lives of 5, 7, or 15 years rather than 39 years (if non-residential real property) or 27.5 years (if residential real property).

Even If You Are Presently Depreciating Certain Property In An Accelerated Manner, You May Still Be Leaving Money On The Table.
A cost segregation study is a federal income tax tool that increases your near term cash flow, in the form of a deferral, by utilizing shorter recovery periods to accelerate the return on capital from your investment in property. Whether newly constructed, purchased or renovated, the components of your building may be properly reclassified, through a cost segregation study, into shorter recovery periods for computing depreciation deductions.

Engineering-Based Report
G. R. Reid is aligned with a professionally licensed engineering firm with experience in engineering-related tax services. We meet all of the criteria and qualifications required by the IRS. We are confident in our understanding of the tax ramifications that must be considered when performing cost segregation or energy tax studies as they relate to the issues of recapture, passive activity limitations and the intricate steps involved in 1031 exchanges. We provide the highest quality cost segregation studies, with full audit defense, professional insurance and comprehensive reporting and full warranty of all reports in the event of an IRS audit.