Cost Segregation is a tax planning procedure accepted by the Internal Revenue Service. It allows commercial and residential rental real estate owners as well as tenants to reclassify building costs as a means to accelerate depreciation deductions, defer taxes and improve cash flow. It is a useful planning tool for newly-acquired and newly constructed properties as well as buildings already in service and properties undergoing renovations. It can maximize tax savings by adjusting the timing of deductions. It can significantly lower insurance premiums and also reveal opportunities to save on property and transfer taxes.
EC Barrett LLC has completed hundreds of cost segregation studies since 1985. Our team will analyze architectural drawings, mechanical and electrical plans, and other blueprints to segregate the structural and general electrical and mechanical components from those linked to personal property. We will also allocate costs such as architectural and engineering fees to all components of the building.