Cost Segregation icon

Cost Segregation

Do you own depreciable property, plan to purchase or construct real property, or make leasehold improvements to your existing facilities? If so, you may benefit from significant tax savings. Cost segregation is an effective tax savings strategy which allows for the reclassification of certain property, such as commercial or residential buildings, for shorter depreciation periods. Shorter depreciation periods accelerate deductions, resulting in reduced current taxable income and increased cash flow.

Benefits of a cost segregation study include increased depreciation in earlier years, increased cash flow, and future write-offs when structural components are replaced.

Lumsden McCormick’s cost segregation specialists work closely with individuals who have constructed, purchased, remodeled, or expanded property to achieve tax savings. We begin by conducting a risk analysis and then move on to identify construction-related costs that can be depreciated over shorter periods than the related building. These items usually include nonstructural elements that are affixed to the building such as carpets, wall coverings, lighting, and portions of the electrical and heating systems, as well as exterior improvements such as sidewalks and landscaping. 

Depending on your particular circumstances, 25 percent or more of the cost of your building may be reclassified, resulting in significant present value savings.

For more information about cost segregations services from Lumsden McCormick, contact a Lumsden McCormick service leader or complete the information below.

Services Leaders

Kerry Roets

Kerry A. Roets, CPA


Upcoming Events

2019 Exempt Organizations Conference

2019 Exempt Organizations Conference

November 22, 2019

Join Lumsden McCormick for our 25th Annual Exempt Organizations Conference featuring local and national experts presenting on a variety of pertinent industry topics.

Learn More
The Avantax Advantage

The Avantax Advantage

December 05, 2019

Avantax Wealth Management delivers a comprehensive, tax-inclusive approach to financial situations that yield healthier financial and investment decisions.

Learn More

Comprehensive. Proactive. Accessible.
How Can We Help?