M&E Cost Segregation

Specialties

Commercial property owners nationwide rely on us for their cost segregation work.

100% of investment property owners know that they can depreciate the cost of their building (not the land) over either 27.5 or 39 years.

Only 10% of these property owners know that the IRS permits them to segregate the costs of specific components of their buildings into shorter depreciation lives of 5, 7 or 15 years.

We want to do the IRS defined engineering work for the other 90%. These property owners have either not been made aware of cost segregation or suffer from the common misconception that they are «too small» to take advantage of cost segregation.

We start with a no-​charge Cost Benefit Analysis which, in the hands of the property owner’s tax advisors, determines whether or not paying for the engineered Cost Segregation Study makes sense for the property owner.

History

Established in 2004.

Cost segregation firms follow the same steps as they compete for your business. They prepare a no-​charge projection of the tax benefits that they expect to produce. This is accompanied by the price they would charge to perform the actual study.

We suggest that you get at least two of these cost benefit analyses.

Do not base your decision just on price.

First, insure that the person who will conduct the site visit is a trained cost segregation engineer, not a photographer hired for the day. Second, compare the amount of detail contained in their final reports. This should probably be your most important consideration. The greater the detail, the greater benefit you will receive, both initially in the accelerated depreciation amounts, and, on a continuing basis, write-​offs of the undepreciated balances of itemized components as they are replaced.

Finally, should the IRS question their study, will they defend their study at no additional cost to you. This should include travel costs.