Cost segregation is a valuable accounting tool that allows you to accelerate depreciation on construction and/or acquisition costs which results in increased cash flow.

Keiter Stephens’ cost segregation studies are based on an engineering approach. Our goal is to identify construction costs that can be depreciated over a period of five to 15 years instead of the default 39 or 27.5 years.

Our cost segregation study carefully breaks down your construction and/or acquisition costs and allocates them to specific asset categories, maximizing depreciation for qualifying costs. Such costs are allocated to personal property asset classes with lives shorter than real property asset classes. The shorter the depreciable life, the greater your tax deductions and cash flow.

A Keiter Stephens cost segregation study provides a significant return on your investment. In addition to deferring taxes with accelerated depreciation, the study provides the basis for your property records system.

There are some less than optimal approaches to cost segregation studies available. Simply segregating percentages of construction costs or using an appraisal approach can leave significant and valuable benefits unrealized. Additionally, these methods may not withstand an IRS audit.

You need an experienced firm to assist in classifying your property to save money not only now, but in the future as well. Your firm’s approach should not leave you vulnerable if the IRS questions the methodologies used.

We work closely with a professional group of construction engineers who have a thorough knowledge of the tax code and experience in successfully defending cost segregation studies before the IRS since 1981.