Cost Segregation

Cost segregation is an IRS-approved tax strategy that allows property owners to accelerate depreciation by identifying and reclassifying certain building components into shorter recovery periods. Cost segregation separates qualifying property components into 5‑, 7‑, or 15‑year assets, increasing depreciation deductions in [...]

Any for-profit owner of real estate can potentially benefit from a Cost Segregation study: Businesses – businesses that own of commercial real estate, such as office buildings, manufacturing facilities, warehouses, healthcare facilities, self-storage, and other building types. Real Estate Investors – investors [...]

A study typically takes 30-45 days to complete. With that said, a lot hinges on how quickly we can get the requested data and information from the client. More proactive clients can expect to receive the study results and final [...]

Absolutely. The financial benefit depends most on the tax rate, timing, asset makeup, and how much income the property owner has to offset with the additional deductions.

Yes. For properties that were placed in service and capitalized in previous years, Hull & Knarr will perform a lookback Cost Segregation study to identify, document, and calculate the catch-up adjustment. Using this methodology, the property owner doesn't have to [...]

For a quick estimate of the potential financial benefit of a Cost Segregation study, feel free to use our online Cost Segregation estimator. Or, with the following additional information, Hull & Knarr can provide a more accurate estimate: Capitalized [...]

Yes. Hull & Knarr works with your CPA and does not replace them. We work collaboratively with accounting firms to ensure proper documentation, compliance, filing, and the maximum benefit is achieved for their clients.

Yes. Hull & Knarr provides free audit defense on every engagement. Well-documented Cost Segregation studies with detailed property identification and construction-related costs face minimal scrutiny.