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

Alexander Intihar

Alexander R. Intihar, CPA

Manager
Kerry Roets

Kerry A. Roets, CPA, MT

Principal

Upcoming Events

April 2025 Buffalo Sabres Tickets Raffle

April 2025 Buffalo Sabres Tickets Raffle

April 05, 2025

Enter to win two tickets to a Sabres home game for the 2024-2025 season!

Learn More
Navigating Expiring Tax Provisions and the Current Market Landscape

Navigating Expiring Tax Provisions and the Current Market Landscape

February 12, 2025

Discover the expiring provisions of the Tax Cut and Jobs Act (TCJA) and their impact on your financial planning and tax strategies for 2025 and beyond. Plus, gain insights from our Financial Market Update.

Learn More
SIGN UP TO RECEIVE OUR LATEST TAX AND ACCOUNTING ARTICLES, NEWSLETTERS, AND EVENTS. SIGN UP

Comprehensive. Proactive. Accessible.
How Can We Help?