COST SEGREGATION

Substantial permanent cash tax benefits can be realized during the year of correction.

Opportunity: It is estimated that every $1,000,000 in reclassified assets results in a deduction of approximately $100,000.

Implementation: Cost segregation is a thorough asset analysis to identify building components, the costs of which can be recovered over 5 years instead of 39 years. The net result is typically a large one-year tax deduction that will increase our clients’ cash flow. Personal property and land improvements are often hidden inside the overall cost of a building leading to a loss of tax savings over the life of the building. The IRS allows corporations to look back and re-classify their fixed asset portfolios. A cost segregation analysis can generate a tax benefit each time a taxpayer places significant assets into service. ThreeFive produces these tax savings for clients by using a team of seasoned cost segregation contract consultants with over 50 years of combined engineering, CPA, property valuation, and construction experience.

Result: Upon completion, our final analysis will be presented in a comprehensive report with detailed schedules ready for immediate implementation and presentation to the taxing authorities, as needed. Our compensation is based upon your savings.


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