THE PROPERTY
* The commercial property (or multiple) has a tax basis > $1,000,000
* The property owner has federal income tax liability.
* The business endeavor is "for-profit".
* The property was constructed or acquired (or inherited) post 1987.
* The property has been renovated or remodeled since 1987.
(Pre-construction and demolition projects also benefit from a CSS.)
>>> All types of commercial properties qualify and the average building costs eligible for reclassification and accelerated depreciation are:
- Restaurants 20 - 45%
- Hotels 25 - 50%
- Shopping Malls 20 - 40%
- Medical/Dental Facilities 20 - 35%
- Airplane Hangars 10 - 30%
- Warehouses 10 - 20%
- Auto Dealerships 15 - 35%
- Hospitals 20 - 40%
- Mixed Use Property 15 - 30%
- Golf Clubs and Courses 15 - 35%
- Retail Facilities 30 - 60%
- Theme Parks 15 - 35%
- Grocery Stores 20 - 35%
- Apartment Buildings 15 - 45%
- Fitness Centers 20 - 45%
- Banks 35 - 50%
- Manufacturing Facilities 35 - 45%
- TV/Radio/Cell Companies 20 - 40%
- Leaseholds 15 - 40%
- Research Facilities 20 - 45%
- Office Buildings 10 - 25%
- Retirement Facilities 20 - 45%
- Resorts 20 - 45%
-
-Wineries 8 - 25%
...and many more...
COST SEGREGATION PROCESS
ETS will provide a free estimate of benefits analysis report that will indicate the potential cash savings involved with your property. All you need to do is fill out the form provided in this website. Then, we evaluate your (taxpayer /building owner) current tax status and future business plans to determine whether a Cost Segregation Study will benefit you.
Our Team approaches every Cost Segregation Study under the "Detailed Engineering" method specified by the IRS. The Detailed Engineering approach uses costs from contemporaneous construction and accounting records. ETS will then evaluate the building's construction costs by component or systems. ETS will then review the project's/facility's construction documents, including as built drawings, and project specifications. Construction based documentation, such as blueprints, specifications, contracts, job reports, change orders, payment requests, and invoices are used to determine unit costs. ETS will visit the facility/project to determine, identify and document how the components and systems are utilized.
ETS will provide a "Detailed Engineering" review of the assets including special purpose mechanical and electrical systems, decorative finishes, site improvements, and any process related to and special purpose construction. ETS then classifies or reclassifies each building component into the appropriate tax life as prescribed by IRS guidelines (39,15, 7 or 5 year tax life). ETS identifies and allocates indirect costs to each asset. ETS compiles a written report with the asset detail supporting the reclassifications and completes the necessary tax form(s). ETS will include all necessary elements in your Cost Segregation Study making the process seamless. Like you, we believe that there is no reason to overpay taxes.
** The actual savings vary according to the design of the facility, use, date of service and the actual costs associated with the property.
** A supportable Cost Segregation Study is a highly technical process and must be completed by a professional firm comprised of architects, engineers and accountants with prior CSS experience. Precisely for this reason ETS provides the Team to meet all IRS, Treasury, and legal requirements.
