Your company's real estate holdings constitute a huge capital investment. A Cost Segregation study can maximize your real property's financial return by generating significant cash flow savings. Our Cost Segregation professionals generate cash tax savings by carving out shorter asset lives (qualifying for 5-, 7-, or 15-year write-off periods) that are normally embedded in a building's construction or acquisition cost (generally depreciated over 39 years). Recent IRS rulings and judicial decisions have approved of shorter lives and accelerated depreciation for equipment and fixtures installed in commercial buildings allowing for substantial cost savings for many types of property owners.

A Cost Segregation study provides strong evidence for significant tax savings that will assist in withstanding governmental agency scrutiny. JM&Co. provides full documentation, employing engineering and cost estimating procedures recognized in IRS rulings and judicial decisions as appropriate. A complete "audit trail" traces derived unit costs from contract documents and other resource data. Your property is categorized into shorter-life classes based on applicable tax rulings.
 
Reclassifying a building or leasehold improvement from the traditional 39-year depreciation period to a five-year classification results in a net present value benefit of 21 cents on the dollar. A switch to a seven- or 15-year classification would represent a 19 and 11 cents net present value benefit, respectively.