SEGREGATION STUDY SOLUTIONS
Facilities Segregation Study: Design-Aire can assist you in evaluating and documenting the potential tax savings at your facility through a segregation study. DAE utilizes an engineering-based approach to cost segregation studies from the expertise of our professionals in engineering, accounting, and cost segregation.
Cost Segregation is the process of identifying and separating the elements of a building into asset classes for greater tax depreciation benefits. This strategic tax planning tool allows you to increase cash flow and accelerate your federal and state
income tax depreciation deductions on facilities you have purchased, constructed, expanded, or remodeled, including landlord
or tenant improvements.
A Segregation Study identifies building systems provided solely for the purpose of producing a product, that qualify for shorter depreciable lives.
Many costs that were originally classified in commercial real property categories, with a depreciable life of 27.5 or 39 years,
can be reclassified into personal property or land improvement categories with shorter depreciable lives of 5, 7, or 15 years.
Similarly sales tax is not paid on the portion of utility bills needed to produce a product. Design-Aire identifies that portion. This accelerated depreciation reduces taxes and increases cash flow.
Cost Segregation Studies benefit new construction, building acquisitions, and renovations to existing property, including leasehold
improvements by lessor or lessee and improvements by an owner or occupant.
For over 28 years, Design-Aire Engineering has focused on helping facilities improve their efficiency by reducing energy costs and tax burden. We would welcome the opportunity to assist you with your project.
View a printer-friendly version of the Engineering White Paper - The Client Guide for Cost Segregation Study.
For more information about segregation studies or how to participate, please contact:Design-Aire Engineering, Inc.
Mr. Bob Boulware, P.E., MBA
317-464-9090, Office
866-515-9090, Toll Free
email: bboulware @ design-aire.com
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