In a hotel in New York, that was estimated worth of 6.5 million, we were able to accelerate over 1.5 million of the property which was classified as commercial to personal. Therefore, the owner was able to write most of the reclassified property off in just five years compared to 39 years. That immediately saved the owner over $370,000. In comparison to NPV or net present value (the value of the dollar today vs. 39 years later), the owner was ahead over $470,000. The amazing thing was the accountant had already did some cost segregation on all of the obvious items such as the carpeting, cabinets, curtains, etc. This was cost segregation was obtained completely from the walls.
Therefore, it�s really important to make sure the cost segregation study is engineered. The advantageous of an engineered report is that it fully conforms to the IRS Audit Techniques Guide. So, the client is not exposed to any risks. In addition, an engineered cost segregation study is able to get the property owner a much larger deduction than a non-engineered study. Other advantageous to an engineered cost segregation study are outlined on the link to the left called Engineered vs. Non-engineered Study.
To address some people�s concerns, engineered studies are not expensive and are excellent value. A qualified engineer will be able to complete a study in one day. Often times, the cost of a study is recouped immediately, for benefits from cost segregation study can be applied to a client�s quarterly payments.
Small commercial property owners and leasehold improvements are welcomed. We can do an engineered cost segmentation study anywhere in the U.S.
If anyone is interested, we offer no-cost estimates, so you can see what the benefits are compared to the costs.
Good luck with all of your business.