Commercial Property Benefit - Cost Segregation Studies

Any structure used for business or as rental property may potentially benefit from a Cost Segregation Study. Every $100,000 in costs reclassified from building to personal property can result in more than $20,000 in net present-value savings. In fact, a Cost Segregation Study can actually provide several major benefits that include:

  • An immediate increase in cash flow through accelerated depreciation deductions.
  • A reduction in both income taxes and real estate property taxes.
  • An easy opportunity to claim "catch up" depreciation on previously misclassified assets.
  • An independent third-party analysis that will withstand an IRS review.

The ideal time for a Cost Segregation Study can vary depending upon your company’s tax situation. At Aero Business Advisors, our team of engineers and tax experts will work together with your management and accountants to determine the best tax planning solution that fits your specific needs.

Free Preliminary Analysis

After obtaining some basic property information, an Aero Business Advisors specialist will provide your company with a free Preliminary Analysis that includes an estimate of the potential tax savings a Cost Segregation Study could generate, plus a written Cost Segregation Study Proposal. This free Preliminary Analysis will help your company determine the proper strategy and timing, while taking into account:

  • Post-Purchase, Remodel, or Construction—Look-Back Studies
  • Year Placed in Service
  • Pre-Construction

The Cost Segregation Study Proposal will also include Aero Business Advisors’s flat fee, based upon the estimated time and materials required to complete the project. Which means you will have a complete picture of all associated costs and benefits well before your Cost Segregation Study is ever initiated.

WHAT DOES A COST SEGREGATION STUDY ENTAIL?

An Aero Business Advisors Cost Segregation specialist will evaluate all relevant information, interview related parties, and present the findings in a clear, well-documented format. It’s a very thorough and comprehensive process that includes:

  • Review of Cost Detail
  • Inspection of Facility
  • Photograph & Documentation
  • Review of Blueprints
  • Cost Reconciliation Report

Who Benefits?

Any type of commercial property bought, built or renovated within the last 20 years, with a building cost of at least $800,000 or leasehold improvements of $350,000, including banks, hotels, restaurants, apartment buildings, shopping malls and manufacturing, grocery stores, retail facilities, car dealerships, or any other type of commercial property.

Why do I need Aero Business Advisors for a Cost Segregation study?

Cost segregation is an engineering based study that requires structural and architectural experience. Our team has many years of experience in Cost Segregation and Structural Engineering and will maximize your return according to IRS Revenue Rulings and case law.

"Cost Segregation Studies are a lucrative tax strategy that should be considered in almost every real estate purchase."

-US Treasury Department

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