At BMF, we perform several types of surveys and reviews that optimize fixed asset taxation, which drastically improves cash flow by accelerating tax deductions.
Traditional Cost Segregation
A building’s structural assets have longer depreciable lives than its non-structural components. A cost segregation study helps the taxpayer reclassify and identify exactly which assets qualify for shorter depreciation. Some of these include:
- Removable floor and wall coverings
- Decorative millwork
- Furniture and appliances
- Land improvements
Using the same cost estimation software used by architects and contractors, we can perform cost segregations without historical construction cost documents. And since bonus depreciation is applicable to assets with a tax life of less than 20 years, there is an added incentive to have a cost segregation study performed on new construction or remodeling projects.
Our professionals can help you take full advantage of the bonus depreciation rules by identifying constructed assets qualifying for the shorter depreciation period.