Tenney & Associates offers cost segregation assistance as part of our tax planning strategy.

 

Cost segregation is useful for a variety of business applications, including commercial real estate owners and tenants, for acceleration of depreciation deductions, for tax deferment and improved cash flow.

 

Cost segregation is beneficial to commercial property owners of almost every size. A Tenney & Associates cost segregation study is typically based on a detailed engineering analysis to support the acceleration of depreciation deductions by identifying costs that can be allocated to shorter recovery periods; primarily 5, 7, and 15-year, as opposed to 27.5 (residential rental) or 39-year (commercial).

 

A cost segregation review provides documentation needed to defer substantial tax payments and to improve cash flow. Cost segregation study does not create new deductions, but increases deductions in the early years of ownership. This front-loading of depreciation allows the taxpayer to take advantage of the time value of money.