Engineer Performed Cost Segregation is the Only Way to Go

COST SEGREGATION can provide commercial real estate owners with tremendous tax benefits including front-loaded depreciation deductions, easier write-offs of building components that need replacement and lower local realty transfer taxes. They are well established, IRS approved, simple to conduct and deliver a huge return for the money invested to complete the study.

The shocking truth, however, is that less than 5% of qualified commercial properties have been cost segregated. This is because licensed CPAs are justifiably unwilling to back studies that are not Engineer Performed Cost Segregation Studies.

Industry experts estimate that over 70% of all Cost Segregation reports leave commercial property owners exposed to IRS scrutiny due to insufficient engineering and lack of supporting documentation.

According to the IRS Office of Chief Counsel
“An accurate cost segregation study may not be based on non-contemporaneous records, reconstructed data, or taxpayer’s estimates or assumptions that have no supporting records.”

Don’t worry, however, our analysis will thrill your CPA and let you sleep well at night.

K2 Commercial Finance has teamed with Commercial Relief, industry leading cost segregation experts, to provide the most comprehensive engineer performed study so clients are guaranteed 100% IRS compliance while receiving maximum tax benefit.

Every study is reviewed and audited by our experienced staff of Engineers and CPAs. Our final study includes component level breakdowns for asset management and detailed engineering documentation that far exceeds industry standards. However, in the unlikely event of an IRS audit and/or if any questions are raised, we will defend our studies at no additional cost.

Determining if your property could benefit from a Cost Segregation Analysis is easy!

Perhaps the best way to understand the potential cash flow generated is to review a sample Cost Segregation Proposal provided here.

Make sure to look at the table on the last page. That picture is worth a thousand words and shows how accelerated depreciation puts your money back into your pocket sooner.

You can also check out a sample Cost Segregation Analysis provided here to understand the level of detail we provide. What is most important is that you understand this is a risk free study, provided by industry experts, that delivers big savings to you – many times the cost of your investment. You have nothing to lose by requesting a no cost, no obligation savings analysis.

Here’s additional information you may want to share with your accountant so that they will be comfortable suggesting that you work with us.

CPA Journal
“A taxpayer can substantially increase cash flow by segregating property costs.”

The American Institute of Certified Public Accountants
“Money doesn’t grow on Trees but it could be hidden in the walls? What would you say if someone offered you a dollar in exchange for a dime?”

Journal of Accountancy
“The average cost segregation study identifies 25% to 30% of a property’s basis that is eligible for faster depreciation”

Real Estate Weekly
“Building owners and managers who do not hire the appropriate experts to conduct a cost segregation analysis will fail to take advantage of significant tax benefits.”

Apartment Finance Today
“Tax-savings trick: Cost segregation studies allow owners to pocket more cash”

Dealers Edge
“Cost segregation can increase cash flow for car dealers”

Forbes Magazine
“If you have an investment property, take it like a sponge and squeeze it”

California CPA Magazine
“Cost segregation is one of the IRS’ cash-flow secrets that CPAs, financial planners, real estate investment managers and other professionals can use to realize tax savings for their clients.”

For additional information:
Please visit the IRS website for the complete Cost Segregation Audit Techniques Guide.