Cost Segregation Studies

A cost segregation study is an engineering-based study that analyzes and allocates purchased or constructed commercial property into shorter life property. As a result, depreciation deductions are maximized and taxpayers benefit through up front tax savings, tax deferrals and improved cash flow. The tax savings are essentially derived from two sources: increased deductions from costs shifted from non-depreciable land to depreciable property (land improvements); and the time value of money impact of accelerating depreciation deductions to earlier tax years.

Bentley Consulting Group employs a team of professionals including national engineering consultants who have performed over 4,000 cost segregation studies throughout the U.S. We also work closely with the client, construction engineer, construction manager, and the property owner’s CPA firm.

We rely on a myriad of tax court cases, rulings, memorandums, pronouncements and promulgations issued over the past 40 years to create a comprehensive report that includes explanations on the segregation of property, testing procedures, depreciation schedules, estimated tax savings, and substantiation. Recent cost segregation studies have produced major tax savings:

• Retail Store
  • $ 21M project cost
  • $ 1.6M tax savings 1st 5 years
  • $ 1.2M present value of tax savings over property life
• Apartment Complex
  • $ 4M project cost
  • $ 230K tax savings 1st 5 years
  • $ 114K present value of tax savings over property life
• Manufacturing Facility
  • $ 11M project cost
  • $ 1.1M tax savings 1st 5 years
  • $ 720K present value of tax savings over property life

For a FREE ESTIMATE of your potential tax savings contact: Leah Szlatenyi, CPA/ABV, CVA, MSPFP, MST at (401) 921-2005 or leah@BentleyCG.com.

As required by U.S. Treasury Regulations governing tax practice, Bentley Consulting Group, LLC informs you that any tax advice contained in this communication (including attachments) was not written or intended to be used for and cannot be used by the recipient or any taxpayer for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.