Cost Segregation Studies can provide many great benefits for property owners as well as tenants who have made improvements to their property. An engineering based Cost Segregation Study increases a property owner’s cash flow by accelerating the depreciation of assets and writing off qualified retired assets. A CPA can help, to some extent, by utilizing their understanding of tax laws and codes. However, by hiring an engineering based Cost Segregation specialist and having it reviewed by an accountant, it will guarantee that you are maximizing the benefits available to you. Engineers have unique skills that an accountant just does not have which will optimize the benefits available to a property owner.
We frequently hear from clients that their accountants have already performed a Cost Segregation Study, so they have no need to complete an engineering based study. We have a vast library of case studies which illustrates how we can find “hidden” assets that may have been overlooked without the input of engineers. This blog will highlight the difference between an engineering based study and a CPA who believes they have been “aggressive” with accelerating the depreciation of their client’s assets.