COST SEGREGATION

An IRS approved, income tax strategy, that allows commercial property owners the opportunity to accelerate the depreciation of certain assets resulting in increased cashflow.

Since 1994 The Ambrose Group has strived to maximize the profitability of its' clients. As a trusted adviser, we guide you through the process of reclassifying your real estate's assets in order for you to reduce your tax liability.

A Cost Segregation Study will accelerate the depreciation of your building from a standard 39-year depreciable life to a 5-, 7-, or 15-year life.

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Qualifying for the Study

Virtually every tax payer who owns, constructs, renovates or acquires a commercial real estate facility stands to benefit from having a Cost Segregation Study performed. Furthermore, this study may also assist in reclaiming missed deductions from prior years.

Property owners with the following criteria experience the most benefits:

  • $750,000 in acquisition or construction

  • $200,000 in renovations

  • Ownership in excess of five years

A Case Study

The following case study was recently performed and is a prime example of the benefits this service can unlock.

The details:

  • Purchase price of $2,900,000

  • A 10,500 sf commercial building

  • Building constructed in 2019

The results:

  • An increase in depreciation in the first year of $657,692

  • 1st year tax savings of $230,192

  • A total tax benefit of $140,260

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