Real Estate Cost

Segregation Services

If a client owns a building with a value greater than $1,000,000 or they own a number of facilities that collectively exceed this threshold, our Real Estate Cost Segregation Services is very important to them.

Hidden Tax Deduction!

Are Our Clients Leaving Money on the Table?

The IRS permits the acceleration of depreciation of some assets that traditionally would be imbedded into the cost of buildings. In essence, they are allowing us to carve out shorter-lived assets(qualifying for 5, 7, and 15 year write-off periods) that are normally imbedded in a building's construction or acquisition costs (generally depreciated over 39 years). To meet IRS acceptance rules, an engineering-based cost segregation study must be conducted and used to justify the accelerated depreciation.
Profit from the benefit of cash flow savings! For every million dollars of property our clients reclassify for faster depreciation write-offs, the present value of our client's increased cash flow from income tax savings approximates $230,000.

Will Our Client's Building Qualify?

A Real Estate Cost Segregation study involves identifying and properly reclassifying the capital amounts allocated to tangible personal property, other tangible property, and land improvements from building costs.

Our client and Dugan & Lopatka will "mine out" these buried savings from:

  • New buildings presently under construction.
  • Existing buildings undergoing renovation, remodeling, restoration, or expansion.
  • Prior purchases of existing property (back as far as 1986.
  • Office/facility leasehold improvements and "fit outs."

Why Can't Other Accountant Do This?
Our client may save $10 in benefits for each dollar invested in a real estate cost segregation study. Our clients typically receive present value savings at 10 to 20 times their investment in the study.

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Copyright © 2003 Dugan & Lopatka, CPAs, PC
Last modified: February 4, 2003