Cost Segregation Services

Specialties

Cost segregation is an IRS-​approved application by which residential rental property owners and nonresidential real property owners can accelerate depreciation and reduce the amount of taxes owed through segregating (reclassifying) non-​structural building components (5-​, 7– and 15-​year IRC Section 1245 Tangible Personal Property) and structural building components (27.5– and 39-​year IRC Section 1250 Depreciable Real Property). This tax deferral strategy reduces taxable income and subsequently increases cash flow by approximately 7−10% of building, renovation and improvement costs. Building owners often use this tax savings to reinvest in their businesses, purchase more property, apply to their principle payment or spend on themselves.

Cost Segregation Services, Inc. (CSSI) is the premier engineering company providing quality, affordable, engineer-​based cost segregation studies for individuals and businesses throughout the United States.

History

Established in 2001.

Shortly after the landmark decision in the 1997 Hospital Corporation of America (H.C.A.) vs. IRS tax case, Jim Shreve was commissioned by a New York City tax attorney who worked on the H.C.A. vs. IRS case to develop the protocols and processes to provide «engineered cost segregation studies» for commercial property owners. Mr. Shreve, an engineer and economist, understood the financial impact of cost segregation for commercial property owners and developed the application according to the tax rules and regulations. At first, the fees for the studies were in excess of $ 100,000 and were only for properties with at least $ 10,000,000 in building costs. Mr. Shreve realized an enormous marketplace was being ignored. This marketplace was commercial property owners who have building costs of $ 300,000 — $ 10 million and should have the opportunity to the increased cash flow through tax savings created by cost segregation.

Meet the Business Owner

Jim S.

Business Owner

Jim is an experienced Engineering Economist and is the founder and CEO of CSSI. Jim attained a BS degree in Industrial Engineering from Louisiana Tech University in 1972. His experience in Fortune 500 Companies included management responsibilities in the construction and management of petrochemical, paper, automobile, and manufacturing facilities. This experience included designing, building, and managing contractor’s processes and cost system methods for the construction of residential and commercial properties. Jim has been involved with cost segregation since he was commissioned to develop the processes and protocols by legal professionals who served on the Hospital Corporation of America tax case in 1997, a seminal case in the application of cost segregation for commercial property owners. Since then, Jim has developed the pre-​eminent engineering-​based study application allowing cost segregation to be economically available to commercial properties of all types and sizes.

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