What is Cost Segregation?
Cost Segregation is a strategic tax tool for building owners to allocate building costs between real estate and personal property based on case law and IRS guidance. Using qualified construction engineers and estimators, Duffy + Duffy will perform your study to meet IRS Cost Segregation Audit Guidelines. Your business will realize immediate tax savings and increased cash flow. The law also allows you to recover taxes for deductions not taken in previous years.
Any building in excess of $300,000 in value that has been purchased constructed or had substantial improvements to their property since 1987. Savings can begin with the first tax return through increased depreciation deductions on the newly segregated costs. If the construction or purchase was made previously, “catch up” depreciation is allowed.