Cost Segregation

If you own business real estate, you may have an opportunity to reduce your tax liability and improve your cash flow. JPS perform cost segregation studies to help our clients increase cash flow and return on investment by accelerating the depreciation deductions generated by their real estate. While most real estate assets are depreciated over 27.5 or 39 years, many assets inside of a building actually qualify for much shorter depreciable lives. Cost segregation studies identify and reclassify shorter-lived assets resulting in substantial cash flow and net present value benefits.

Whether you built your own facilities, recently acquired, acquired years ago or have made improvements, you may have an opportunity to optimize your asset classifications and reduce your taxes. Cost segregation doesn’t require us to file amended returns, and there is often an opportunity for “catch up” depreciation resulting in significant savings on current tax filings.

Our cost segregation study services can:

  • Identify shorter lived assets that qualify for accelerated depreciation and bonus depreciation
  • Optimize depreciation deductions for new construction
  • Provide substantial opportunity for catch up depreciation on previously acquired buildings
  • Reduce current year tax liabilities
  • Provide positive NPV by accelerating deductions and reducing taxable income

Find out how JPS can help you and your business!