Andersen Global
Cost Segregation Insights
Did you Know a Cost Segregation Study Could Generate Increased Cash Flow?
Given anticipated IRS scrutiny over cost segregation studies, Andersen has the experience to optimize tax return positions supported by the documentation that is most likely to withstand IRS review.
With 100% bonus depreciation back in play after enactment of the One Big Beautiful Bill Act for qualifying property acquired after January 19, 2025, a cost segregation study can reap invaluable benefits.
Cost segregation is a strategy that involves personalized review of each individual property feature to identify potential accelerated depreciation deductions – reducing taxable income in the near term. A study to reclassify building components if you’ve purchased, constructed, or renovated commercial or rental property can result in more liquidity for future investments.
Increased Cash Flow In Action
Corporate
High-Net-Worth Individual
S-Corp or Pass-through
Interested in a Cost Segregation Study?
A qualified cost segregation study can offer businesses increased cash flow over several years.
- Commercial, industrial or rental residential property owned by taxpayer(s) looking to optimize tax planning
- Qualification for depreciation under the U.S. tax system (MACRS)
- Property that was built, bought or renovated after 1986
- Taxable income to offset cost segregation study savings
- Project costs that exceed $750,000
- Increased cashflow in the next 1-3 years.
- Accelerated deductions: bonus depreciation on reclassified property
- Opportunity to conform to proper accounting methods
- Improved tax planning for future repairs and maintenance
- Long-term net present value (NPV) impact
- Reduced estimated payments
- Pre-Construction Services
- Retroactive Studies
- Capital vs. Expense Analysis
- Energy Efficient Commercial Building Deductions
- Evaluation & Support Services
Cost segregation has long benefited taxpayers with increased cash flow.[...]
