Cost segregation is a tax planning technique that can increase cash flow by accelerating federal tax depreciation of construction-related assets by depreciating assets over 5, 7, and 15 years instead of 27.5 or 39 years.
Cost segregation can benefit anyone who owns a residential or commercial building with a tax liability. Opportunities exist for newly acquired or constructed buildings, building acquired or constructed in prior years, and significant renovation, expansion, or remodel activities.
The benefits of a cost segregation study include:
- Increased cash flow
- Greater tax deductions
- Accelerated depreciation
- Enhanced competitive edge
The Hoffman Group is a full-service accounting and consulting firm dedicated to providing clients with transparency, superior service, and dynamic results. Our team of Certified Public Accountants and consultants use their breadth of experience to offer our clients tailored solutions to help them amplify profitability, maximize competitiveness, and reach their financial goals. By implementing a transparent and thorough approach to accounting, we provide a breadth of services to meet the unique needs of our clients, including: tax compliance and preparation, audit, review and compilation of financial statements, management advisory, business valuations, mergers and acquisitions, litigation support, forensics and fraud services, cost segregation, employee benefit plan audits, outsourced accounting and CFO services, and multistate tax services.