Cost Segregation

Opportunity: It is estimated that every $1,000,000 in reclassified assets results in a deduction exceeding $200,000.

Implementation: Cost segregation is a thorough asset analysis targeting the optimal pooling strategies to minimize taxes and maximize recovered monies. 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 construction project or the acquisition of a building leading to a loss of tax savings when placed into service. This loss is largely the result of a significant gap in the recovery periods (depreciation) between real and personal property for income tax purposes. In 1996, when the IRS changed its position and allowed corporations to look back in time and re-classify their fixed asset portfolio, the opportunity to recover monies was created. Upon completion of a cost segregation analysis, clients can receive an income tax benefit in one single adjustment versus a traditional long-life depreciation method of 39 years. ThreeFive will recover client monies 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…before we are paid!

Launching in Fall of 2011