Benefits of Cost Segregation:
ELB Consulting performs a detailed analysis of your commercial property for the purpose of identifying all of the construction related expenses that can be depreciated over 5, 7 and 15 years.
The result of our study is the accelerated depreciation of these deductions reducing your tax liability and increasing your cash flow by combining the expertise of ELB Consulting’s staff who are all experienced in cost and construction estimating, tax codes and IRS documentation.
Material reductions
in your federal and state tax liabilities for the year of the study and the next decade, typically hundreds of thousands of dollars.
A detailed breakdown
of the many components that comprise your building which will make repair, remodeling and replacement of the same less costly and more beneficial to you.
Generates immediate increase
in cash flow through accelerated depreciation deductions by reducing Federal and State income tax.
Enables property owner to
correct misclassified assets and the opportunity to claim, “catch up” in the current year.
Demolition & Rehabilitation
A cost segregation study will identify the components of a building, which can be classified as personal property versus real property for write-off versus capitalization prior to demolition & rehabilitation. This allows the property owners to write off these items opposed to capitalizing the assets. This can generate substantial tax benefits.
Bridges the gap
between engineering, construction and accounting systems.
Reasons Benefits are often overlooked:
Commercial property owners
are not aware of the magnitude or importance of the potential benefits.
All components of
“real estate” are assumed to be “real property” for Federal tax purposes.
Complexity of the tax law requires
familiarity with numerous IRS sections, regulations, revenue rulings and case law.
CPA’s and the property owner
are unable to extract the necessary detail from contractor invoices and payment applications, or the property is purchased well after the building has been built and the necessary information is not available.