Cost segregation is the IRS approved method of re-classifying components and improvements of your commercial building from real property to personal property. This process allows the assets to be depreciated on a 5, 7, or 15-year schedule instead of the traditional 27.5 or 39-year depreciation schedule of real property. Thus your current taxable income will be greatly reduced and your cash flow will increase.

A special report entitled, Cost Segregation Applied, reviews the practice of cost segregation.

Property owners and managers can request a FREE analysis by emailing the information below to:  information@boutiquelodgingassociation.org and putting "Cost Segregation" into the Subject line or contacting our specialist:
Lou Mowbray
Phone: 818-703-7209 / Cell: 818-416-8568
Email: lmowbray@costsegreps.com.

1.  Contact Name
2.  Owner Name
3.  Email
4.  Phone Number
5.  Property Type ( i.e.retail, commercial, residential)
6.  Property Address
7.  Date the Building was Acquired (if new, the occupied date)
8.  The Building Cost at time of purchase (excluding land cost)
9.  Improvement Cost

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Three Simple Steps to Cost Segregation

To help you reduce your taxes and increase your cash flow:

Step 1: Analyze
Request your complimentary Property Analysis.

Step: 2: Review
Based on the Property Analysis, we will consult with you and your advisors regarding your effective tax savings.

Step 3: Complete
Your complete Study is performed and completed within 4-6 weeks.

Does my property qualify?

Yes, if you:

1.) Purchased, constructed, or remodeled property after Jan. 1, 1986

and

2.) Anticipate holding the property for at least a few years 

Why haven't I heard of cost segregation?

Cost segregation was first applied and performed by major accounting firms with in-house cost segregation departments on the largest properties of their most significant clients. One study originally cost upwards of $100,000. 

We've developed, through a partnership with CSSI, the methods and protocols to deliver this same service to boutique & lifestyle property owners at very affordable rates. This means you can take advantage of this tax savings that was once only enjoyed by the owners of exceptionally large properties. 

Can I benefit from a Cost Segregation Study?

Yes. Let us provide the necessary data to your advisors to determine potential tax benefits. 

When should a study be done?

It is best to have a study completed for the year the building or improvements are placed in service. However, IRS Revenue Procedures allow taxpayers to "catch up" on the depreciation that was not claimed from the first day the property was placed in service without amending prior years' tax returns. Furthermore, the IRS recently allowed for the "catch up" period all in the first year rather than over four years, when the Revenue Procedure 99-49 was first introduced. A cost segregation study can be performed on any property constructed, acquired or remodeled since Jan. 1, 1986. 

Why should I perform a Cost Segregation Study?

Without a Cost Segregation Study your accountant will only be able to use straight line depreciation, 39 or 27.5 years. A Study provides your accountant with accurate information to establish 5, 7, 15, and 27.5 or 39-year depreciation schedules, which substantially increases tax savings in the earlier years of owning your property.

TESTIMONIALS:

AICPA, Cost Segregation Applied
“A taxpayer can substantially increase cash flow by segregating property costs.”

“Cost segregation can provide real estate purchasers with tremendous tax benefits from accelerated depreciation deductions and easier write-offs when an asset becomes obsolete, broken or destroyed.”

– By Jay A. Soled, JD, LLM and Charles E. Falk, CPA, JD


AICPA, The Best of Both Worlds
“Selecting a firm that uses qualified professionals with years of significant, relevant experience can be an important differentiator in the quality of a cost segregation study.”

– By William Edward Allen III, CPA and Mary B. Foster, Esq.


A Practicing CPA
“A good relationship with an established, experienced cost segregation provider is important so that, if the IRS inquires about a cost segregation study three or more years down the line, the provider is willing and able to stand behind the work.”


President of a Community Bank in Chicago
“I view the services of Cost Segregation Services Inc. as important for our clients and important to our bank’s initiative.”


San Diego CPA Firm
“We appreciate the engineered cost segregation study by Cost Segregation Services, Inc. which gives optimum results for our clients while applying the IRS rules”