Cost Segregation is used to accelerate depreciation for investment property by breaking out the tangible personal property and land improvements that are normally grouped together as a real property. Personal property and land improvement can generally be reclassified as 5, 7, or 15-year property instead of 27.5 or 39-year property. The study doesn’t increase the overall amount of depreciation of an asset, but will accelerate depreciation by shortening the recovery life of the property. Cost Segregation allows property owners to increase cash flow, reduce tax liability, and allow for a loss deduction when a building component gets replaced before it fully depreciates.
Our Cost Segregation department is headed by Geoffrey Gan, who is a Certified Cost Segregation Professional by the ASCSP (American Society of Cost Segregation Professionals). With this designation, our deliverable meets the standard quality guidelines set forth by the organization in order to provide clients with the detail needed to stand up under an IRS audit. Geoff’s experience in the industry also ensures taxpayers get the maximum amount of benefits a cost segregation study provides. Finally, great service is what Incentax is built upon and with Geoff overseeing all Cost Segregation projects, he ensures that you and your client are treated with the highest priority.