Cost Segregation Study Services in Pennsylvania | RKL LLP

Cost Segregation Services in Lancaster, Reading, York and Harrisburg PA

Everyone knows that a dollar today is worth more than a dollar tomorrow. Or, in our world, a tax deduction today is worth more than a tax deduction tomorrow. A cost segregation study is a strategic tax savings tool you may be able to leverage now to increase cash flow.  In Central Pennsylvania, you won’t find a team of consultants with more cost segregation experience than RKL.

What Is a Cost Segregation Study?

If you’ve recently built, renovated, expanded or purchased a building, you may have some significant untapped tax savings in your property and facilities. A cost segregation study allows you to identify, segregate and reclassify your building-related costs that are currently classified as real property to shorter, depreciable lives.

Recent IRS rulings and procedures allow taxpayers to change accounting methods to take advantage of these previously understated depreciation expenses. This is done without amending your tax returns, which generates a relatively large tax deduction in the year of change, allowing you to meet current cash flow needs or invest in your business.

Considering cost segregation? Our team can provide you with an analysis of the potential tax savings before engaging in the full report so you can make an informed decision.

Two Levels of Cost Segregation at RKL:

  1. Cost Segregation Analysis. Analysis of construction costs and determination of appropriate depreciable lives of each item on a final asset listing. This level of analysis provides sufficient detail for you to incorporate the segregated costs into your depreciation software.
  2. Formal Cost Segregation Report. Includes analysis as described above, plus a report detailing specific IRS rulings, procedures and recent court case decisions supporting the segregation of asset summaries, tax authority support and site photographs.

Benefits of Cost Segregation

This tax savings strategy offers several benefits for business owners to consider. Conducting a cost segregation analysis allows us to recognize the portion of a building’s cost that can be considered “personal property” or a “land improvement”, and depreciate it over a shorter period of time than the standard depreciation life of 39 years for a commercial building or 27 ½ years for a residential building.

Consider how the following cost segregation benefits may help your business:

  • Greater tax deductions
  • Accelerated depreciation
  • Increased cash flow
  • Enhanced competitive edge

Did you already renovate or expand a facility without taking advantage of accelerated depreciation methods? Cost segregation can be applied to past projects as well as current ones.

Who Can Benefit from Cost Segregation?

There are a variety of projects for which individuals or companies can accelerate depreciation deductions:

  • Construction of a new building
  • Renovation or expansion of current facility
  • Purchase of a building
  • Renovations made to a leased building

Buildings that Qualify for Cost Segregation Analysis

RKL performs over 50 studies every year for companies in a variety of industries. Some examples of businesses that have benefited from our cost segregation services include:

  • Office buildings
  • Apartment buildings
  • Hotels/motels
  • Restaurants
  • Manufacturing facilities
  • Warehouse facilities
  • Auto dealerships
  • Retail establishments
  • Farms
  • Golf courses
  • Retirement facilities
  • Others

Learn More About RKL’s Cost Segregation Services

Run-time: 02:11 Get a quick look at the how’s and why’s of the cost segregation study, a powerful tax savings strategy that could increase cash flow for your business.

Let’s talk about whether a cost segregation study is right for your company. Contact Robert Gratalo, Partner, Tax Services Group, at 717.843.3804 or rgratalo@rklcpa.com.

 

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