Cost Segregation Tax Strategies

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A Cost Segregation Study (CSS) is a strategic tax planning tool, which allows building owners to accelerate building/property depreciation significantly. Using traditional depreciation methodology, building assets are depreciated over a 27.5 – 39 year period. CSS enables reallocation of those assets into other “short-term” deprecation categories.

Timely Deliverables
Fixed-Fee
No-Cost Audit Support

General Guidelines

Building Purchases

$500K – $750K Acquisition Cost – Explore
$750K – $1.5M Acquisition Cost – Most Likely
$1.5M + Acquisition Cost – Highly Likely

Renovations

$50K – $150K Remodel Cost – Explore
$150K – $250K Remodel Cost – Most Likely
$250K+ Remodel Cost – Highly Likely

Key Planning Points

Qualified Properties include any Income producing properties and business owner occupied properties.
Can go back as far as 1987 without amending tax returns using 3115.
The Tax Cuts and Jobs Act now allows businesses to expense the cost of certain new and used qualified property placed in service after September 27, 2017, including roofs, HVAC, security systems & more!

Common Qualifying Expenses

Specialty Fixtures and Finishing
Specialty Electrical and Plumbing
Personal Property

Timing & Cost

Fees vary based on the scope but typically range in the $5,000 – $15,000 or more.
We highly recommend an upfront feasibility analysis, which is performed at no cost!

2019 Firm Results

EV Increased by Training

Tax Benefits Generated

Average 1st Year Benefit

Success Stories

R&D Tax Credits Save $280,000+ for Custom Plastics Manufacturer

Cunningham & Associates Saves MA Plastics Manufacturer $280,000+ with R&D Tax Credits Cunningham & Associates works with small and midsize companies throughout the manufacturing industry to help them find lucrative tax opportunities. One of our specialties...

Tool and Die Manufacturer R&D Credit Savings Exceed $500,000+

Initial R&D Credit Savings Exceed $500,000 at $7M-$12.5M Tool and Die Manufacturer Primary Activities: Company manufactures custom machine parts and tooling. Tool & Die Manufacturer Qualifying Activities for R&D Credit Qualified expenses include custom...

General Contractor Finds $240,000 in Tax Credits

$30M General Contractor Identifies $240,000 in R&D Tax Credits Primary Activities: Bid to specification, value added engineering, design build and green energy. C&A Identified several in-house estimators, engineers, designers and project managers with...