Cost Segregation

Malin Bergquist helps clients reduce taxes and improve cash flow by properly valuing their buildings and facilities. The process shortens the depreciable life span for some assets so clients receive more tax benefits sooner. Depending on a client’s circumstances, it can be an advantageous way to write off depreciation for property investments on an accelerated basis.

Among others, we have performed this service for a savings bank which was acquiring a new building.

Because the IRS will only accept studies performed by professional engineers or architects, we provide this service through our firm’s membership in CPAmerica. Our team’s expertise and streamlined business process make it easy and cost-effective for clients to reduce property taxes.

CPAmerica’s engineering group has conducted more than 4,000 studies in the past decade, including:

1. Examining architectural and engineering drawings and specifications
2. Analyzing cost data
3. Itemizing items qualifying for shorter life classification
4. Physically inspecting a property
5. Apportioning direct labor, material components and indirect costs among MACRS property classes
6. Identifying total capitalized costs and reconciling to supporting project costs documentation
7. Providing written report used to prepare tax returns and IRS filings

Start-Up Phase – This includes orientation and introduction to our team members who will need to access your property.

Input Phase – This involves data collection and submission, such as:

• project name and location
• project description and type of facility
• date placed in service
• existing depreciation schedules
• contact information
• site survey
• project budget and final AIA payment application (new construction/renovation)
• closing statement and land estimate (purchase price allocation/acquisition)

Implementation Phase – This includes conducting a study, and submitting reports and work papers; and preparing appropriate tax documents and filing them on your behalf.