Individuals and companies that build, purchase, remodel or expand any kind of real estate can benefit financially from using cost segregation.
Because personal property can get buried in the lump-sum costs of a building purchase or construction project and end up classified as real property, a cost segregation study can unearth those assets and recover their tax value. Further, it increases cash flow by deferring taxes and typically creates tax savings of 2 to 5 percent of the total basis of the property. And while the primary benefit is present value tax savings, permanent tax reductions often occur as well.
