CPAs

Increasing your clients depreciation deductions for improved real property can reduce their taxable income without additional cash outlay. That not only helps their cash flow, it can also make [the CPA] look like a hero when you want to quantify the savings for them.

In addition, using qualified appraisers, architects or engineers to perform the analysis is preferred to a taxpayer (or taxpayers accountant who is not a qualified appraiser) doing the study and is more likely to withstand an IRS challenge to the allocations.

“Duffy + Duffy’s cost segregation allows real property owners to accelerate depreciation for tax purposes by classifying a portion of the investment to personal property rather than real property In Jenne’s case about 34% of the building cost was classified to personal property and resulting in tax savings of approximately $195,000.” Rose Jenne, Jenne Distributors, Inc"