Generating substantial savings

With cost segregation services

When property construction or acquisition costs are properly allocated, tax and cash flow savings tend to be a consequence — a consequence that no taxpayer would ever complain about. Whether it’s a new building construction, expansion, real estate purchase, rehabilitating an old facility or relocating with leasehold improvements, CTBK can show how property can generate a large tax savings.

This system of savings is cost segregation. A cost segregation study carefully breaks down construction or acquisition costs and allocates them to specific categories, maximizing accelerated depreciation for qualifying building components. The shorter the depreciation period, the greater the savings. This same study can also be used to increase sales tax exemptions, lower property taxes and even provide the basis for a property records system.

CTBK’s cost segregation approach

A good way to miss out on valuable tax benefits and savings is to have only a general contractor segregating percentages of construction invoices. Not to mention, this wouldn’t withstand an IRS audit.

At CTBK, our innovative approach with an engineering perspective combined with work-paper documentation brings to fruition the depth of detail and support that is accepted by the IRS and the courts. For decades, our team has worked closely with a professional group of construction engineers who have a thorough knowledge of the tax code and experience in defending cost segregation studies before the IRS.

This is one of the many ways in which CTBK’s one-team approach benefits our clients. With our combined tax, construction and engineering skills, we thoroughly analyze construction and acquisition costs and then perform quantity take-offs from the construction drawings, which maximize the amount of personal property costs and provide documentation to support our conclusions.

How to get tax savings

CTBK’s cost segregation approach applies to several different areas, including the following:

  • Accelerated depreciation deductions
  • Sales tax
  • Property tax
  • Construction advisory
  • And more

For a customized approach, the team at CTBK offers a one-team approach joined by professionals that provide superior expertise and exposure to a variety of industries. To learn about possible tax savings, reach out today.