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 Cost Segregation |
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To gain greater tax benefits, enhanced cash flow and increased ROIs, real estate owners and businesses require experienced cost segregation specialists. |
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Qualified Properties
Newly constructed buildings
Recently acquired buildings
Expanded buildings
Renovated or restored buildings
Special use facilities & properties
Substantially improved lease hold interests
Qualified Non-Structural and Land Improvement Costs
Removable structures
Certain components of tenant finishing work
Carpeting & certain flooring
Landscaping
Decorative lighting
Site fencing
Parking lot improvements
Certain plumbing & electrical systems
Security systems
Certain special use structures
Allocated Soft Cost including Engineering & Architectural fees
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MWEs cost segregation services are an important component of tax advisory services. Through cost segregation, we identify and quantify those portions of the cost of a building or property, which under established tax authority and guidelines, can be depreciated over a shorter life. The result - enhanced tax benefits in the beginning of the life cycle of a new project or renovation thereby increasing after tax cash flow and return on investment.
Individuals or business owners, regardless of industry, can benefit from cost segregation as long as they own, operate or rent commercial or residential real estate.
Commercial and residential real estate is depreciable over extended lives. Cost segregation can significantly shorten the depreciation periods for certain non-structural and land improvement costs. As well, implementing accelerated depreciation methods that are not available to real property will further increase tax benefits.
The Cost Segregation Team at MWE is fully knowledgeable regarding the techniques for cost segregation and how to prepare cost classification documentation for regulatory purposes.
The cost segregation study involves:
Identification of all non-structural and land improvements costs
Categorization of these costs in accordance with applicable asset classification guidelines incorporating the most favorable depreciation lives and methods
Development of proper documentation for taxing authorities and management purposes
Preparation of additional management information to help you enhance cash flow, reduce certain costs, qualify for various incentives and gain greater control over expenses
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