Cost Segregation might not be a term you are familiar with, but if you have purchased or remodeled any kind of real estate, it might be time to learn more about it. Cost Segregation is a commonly used strategic tax planning tool that allows individuals and companies, who have purchased, constructed, remodeled or, expanded any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.
The benefits of a cost segregation study include:
- An immediate increase in cash flow
- A reduction in current tax liability
- The deferral of taxes
- The ability to reclaim “missed” depreciation deductions from prior years (without having to amend tax returns)
ELB Consulting, a company that specializes in Cost Segregation, has completed over 10,500 studies ranging in size from small office remodels to billion dollar high-tech manufacturing plants. Their skilled staff of cost segregation specialists uses the highest level of engineering methodology as defined by the I.R.S. to produce thorough, accurate, and defendable “fully engineered and accounted” cost segregation studies.
When comparing to the I.R.S. Audit Techniques Guide Methodologies, their report format and methodology exceeds the requirements of the Detailed Engineering Approach from Actual Cost Records or Detailed Engineering Cost Estimate Approach. Their team of experts has created the most detailed engineering methodology available to the market. The ELB Cost Segregation Study will account for ALL qualifying (5, 7 and 15 year items) and non-qualifying (39 year or 27.5 year items). This not only allows them to maximize depreciation by addressing components our competitors never considers, it provides their clients with a fixed asset tool.
Other firms produce an “engineered based” study format (Survey or Letter, or Residual as defined by the I.R.S.) which can result in thousands and/or millions of dollars still left on the table.
ELB’s unique study format is “fully engineered and accounted” and provides the highest level study detail and tax benefits available to the client. This study format was developed for the following primary reasons:
- Provide the most available tax benefits available to each client
- Provide the most accurate and defendable engineered cost segregation study
- Provide a study format that includes asset management and disposition features
- Provide an unmatched study guarantee
CPA’s and the I.R.S. not only support their studies, but often ask our experts to review competitors’ report for accuracy. In fact, one of ELB’s partners is an Expert Witness for the U.S. Tax Court in cost segregation. He is considered by many as the Pioneer of the Industry.
ELB guarantees each and every study. Should you ever encounter an audit, they stand behind and defend their study at no additional cost to you (Full Audit Protection Guarantee). Their in-house team of engineers, accountants and construction professionals have performed thousands of cost segregation studies, and have NEVER had a study rejected by the I.R.S.
For more information about cost segregation and to learn about special opportunities with ELB as a member of Fairway, please contact your account manager at Fairway and we will be happy to help.