The RCG Cost Segregation Study.

Cost segregation is a tax planning tool that allows owners of commercial properties to reclassify the depreciable life of significant portions of their properties from 27.5 or 39 years to 5, 7 and 15 years. In most cases, accelerating the depreciation on real estate properties can help business owners substantially lower their taxable income levels.

A cost segregation study may be performed in various ways. The only method available for purchased or existing buildings, is the engineering method, where a qualified architect, construction engineer, or construction estimator generates asset takeoffs through blueprint analysis and then estimates the costs using nationally recoginzed cost estimating procedures acceptatble to the IRS.

While most CPAs are not equipped to perform cost segregation studies in-house, RCG has the in-house engineering expertise required to provide full cost segregation services to all of our clients. Since most studies require the engineering method, the IRS requires the use of qualified architects, construction engineers or construction estimators. More, a cost segregation study performed without adequate resources to support the segregated costs will not be accepted.