Cost Segregation is the analysis of a building and its costs to by carefully itemizing certain aspects of real estate that may be more appropriately defined as personal property. Any building in the United States currently under construction or remodeled since 1987 may be eligible for a cost segregation analysis.
What Items Can Be Segregated?
Non-structural items, including specialty lighting, interior decorating, exterior landscaping and even the labor costs associated with the installation of these items can be reclassified for accelerated depreciation. By segregating these building costs, property owners can realize a faster return on their capital investments.
The Modified Accelerated Cost Recovery System (MACRS) is used to recover the basis of most business and investment properties placed in service after 1986.
Industry Specific Guidance
Some industries have recommendations for categorization and lives of various assets.
Our Cost Segregation Team
Peter J. Scalise
Peter J. Scalise is a highly distinguished BIG 4 Alumni Tax Practice Leader and has approximately 20 years of progressive tax leadership experience developing, managing and leading multi-million dollar tax advisory practices on a regional, national, and global level. Peter specializes in cost segregation analysis and TPR compliance as well as many other Federal Tax incentives.
Christopher S. Utschig
Christopher S. Utschig, a licensed professional engineer, has a proven track record spanning more than thirty years in the design and construction of both residential and commercial projects, throughout the United States. Christopher has established a professional reputation for excellence in strategic planning, construction feasibility studies, cost estimating and profitability assessments, value engineering, and design-build strategies.
Our Cost Segregation Process
- Complete a preliminary review to quantify the benefits of a study
- Gather basic information about the property such as building and component engineering drawings
- Determine if an in-depth review will yield a significant enough result to warrant the expense of analysis
- Discuss the review, present findings and fee estimate
- Supply a detailed report of estimate and actual costs
- Site visit and review made by a PM Business Advisory expert
- Work with collaborative architectural engineering professionals to assemble data and allocate costs
- Assign proper classification of your assets
- Deliver carefully prepared comprehensive report as part of our review meeting