As a related entity to Chicago-based Russell Novak & Company LLP (RNCO), Cost Segregation Analysts, LLP (CSA) helps you realize accelerated tax savings on your real estate holdings and investments. In a number of instances, proper planning reduces depreciation from 39 years to 5 to 15 years. Our team includes engineers and tax specialists who can increase your cash flow by accelerating depreciation. This dedicated group is focused on assisting you in determining the tax savings that are rightfully yours and can explain in detail the process and qualifying guidelines. To meet the team of engineering and accounting experts contact Russell Novak at RNCO.
Cost segregation speeds up the rate of property depreciation. Under current law, buildings are depreciated over 39 years. Often, personal property and land improvements are included in the cost of construction or in the purchase price of the building. Personal property typically accounts for 15% - 60% of the total cost and is properly depreciated over 5 to 15 years rather than over 39 years. Accelerating depreciation by identifying the personal property results in increased current tax deductions, thus lowering tax payments.
If your company pays Federal income taxes, has recently purchased, built or remodeled a building for at least $1,000,000 or has had multiple locations in use since 1987, you may benefit significantly from CSA. Cost segregation can deliver substantial tax savings. The following schedule of property uses reflects typical allocations of building costs to short-life assets.
Warehouses | 10-15% |
Office Buildings | 15-25% |
Restaurants | 20-45% |
Retail Stores | 20-35% |
Banks | 25-40% |
Manufacturing | 25-55% |
Hotels | 25-35% |