Real Estate

Client Success

Investing in commercial real estate for your business versus leasing space can be a great long-term financial decision. Our client who specializes in heavy civil, site construction, and structural concrete services, was weighing this option as their company continued to grow. Our CPA’s were able to show the benefits of a cost-segregation study on the client’s potential real estate investment.

Solution:

Typically, the facility’s property components and land improvements would be classified as “building” and depreciated over the standard 39 year period. Cost-segregation studies identifies items that could be reclassified to shorter depreciable lives.
After seeing the tax savings resulting from the study, our client chose to build a new shop to repair and maintain their construction equipment. After having a cost segregation study done, they learned that the property which otherwise would have been classified as 39 year property was depreciated over 5, 7 and 15 years, making it eligible for bonus depreciation. We were able to guide our client to thousands of dollars in tax savings by allowing them to see their opportunities with this sound decision.

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