Commercial Property 

(Cost Segregation) Overview

Our Cost Segregation service is one of three flagship services making up our Specialized Incentives. 

Cost Segregation is an engineering based study that permits commercial real estate owners to reclassify real property for depreciation purposes and reclassify it as more rapidly depreciating personal property. This reclassification results in significant cash flow benefits in both present and future years through considerably shorter depreciable tax life and accelerated depreciation methods.

Service Overview

The Commercial Property benefit is a Federal program designed for business owners who own commercial properties, or have performed significant leasehold improvements.  This program traces it’s roots as far back as the Tax Reform of 1986, but went through significant changes in 2004 making it more accessible for small and midsize property owners to take advantage of.  The most recent changes appeared as late as February 2009 in the American Recovery and Reinvestment Act.  This is an engineered based program that focuses on the components of the building.  90% of all commercial properties qualify for this program.  Commercial Property Benefit provides an opportunity to significantly reduce federal taxes and improve cash flow.

Targeted Industries

Hotels, Restaurants, Apartment/Nursing Complexes, Office/Retainer Complexes, Shopping Malls, Manufacturing Facilities, Funeral Homes, Dealerships, Golf Courses, Grocery Stores and Medical Facilities.

Minimum Requirements

A Commercial Property that:

Was purchased or built within the last 20 years, with $500K or more in cost

OR, has renovations/improvements within the last 20 years of $250K or more in cost

AND, has paid federal taxes within the last 3 years, or plans to in current year

Sales Process

Collect signed service agreement and documents

Schedule Discovery Call using the GMG portal and upload all documents