At Vance Flouhouse & Garges, we have proven cost segregation strategies that can be used to accelerate real estate tax depreciation deductions for businesses. This results in a deferral of taxes which in turn increases cash flow.

Cost segregation works by separating the costs of property from the building, land acquisition or construction costs. This benefits your business because the property has a shorter useful life for depreciation purposes when it stands on its own than when it is combined with the longer lived building or land.

There are certain limitations surrounding cost segregation. It can only be performed on buildings constructed, acquired, enhanced or expanded in 1986 or later. Additionally, certain industries tend to have buildings with the most potential for tax deferral and improved cash flows. These industries include but are not necessarily limited to the following:

• Auto dealerships

• Hospitals and medical facilities

• Industrial facilities

• Manufacturing facilities

• Office buildings

• Retail stores and shopping centers

• Apartment or condominium complexes

• Supermarkets and restaurants

For more information on cost segregation studies, click here.

Cost Segregation Study services are provided by VFG Associates, Inc.