Kroll Real Estate Advisory Group offers specialized expertise to meet companies’ cost segregation needs. We examine properties, identify qualified personal property costs and classify those costs into the appropriate MACRS recovery period. The firm’s cost segregation services yield benefits such as reduced individual and corporate taxes and reduced property taxes. The following types of real property should be considered for a cost segregation study (however, this list is not exhaustive): multifamily apartments, hotels, resorts, casinos, shopping centers, supermarkets, manufacturing facilities, data centers, golf courses, office buildings, warehouses and biotech and pharmaceutical facilities.
Because we understand the subtleties and intricacies of the procedures, we can help uncover deductions where companies may not have known they existed.
Cost segregation studies are typically implemented in cases involving the construction of a new facility, acquisition of existing real estate or renovation, and enhancement or leasehold improvement of an existing facility.
In addition to benefits related to newly constructed or acquired facilities, there may be tax depreciation benefits for existing properties to which a cost segregation study was never applied. Under various revenue procedures, taxpayers are allowed to reclassify the depreciable lives of certain building components and pick up previously unclaimed depreciation deductions.
