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Cost segregation is a way to accelerate the depreciation of certain real estate building and renovation costs - leading to a direct reduction in income taxes owed and a corresponding improvement in cash flow.
A cost segregation study applied to real estate is almost certain to save a company significant amounts of money if the real estate:
- is worth more than one million dollars and
- has been held for less than 10 years.
Benefits for most clients outweigh the cost of the study by factors of 10 or more.
Every $1 million in assets reclassified from a 39-year to a five-year recovery period results in a net present value of more than $200,000.
- Income taxes are reduced
- Cash flow improves
- Companies can claim prior years’ depreciation without amending prior returns
Our cost segregation affiliate, Ernst & Morris Consulting Group, Inc., has conducted more than 6,000 cost segregation studies throughout the U.S. Together, we conduct a thorough engineering, accounting and
tax-based review of your building costs to determine your savings.
We detail the savings we expect to help you realize in our initial proposal. Our final accounting generally equals or exceeds those expectations.
We support our conclusions with a written report and comprehensive documentation.
Improve your cash position today. Contact us.
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Rely on us for due diligence when
considering a merger, acquisition, sale, or other change
in your business.
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services help keep clients on track.
Jeffrey Van Riper,
Controller and Secretary,
Seneca Foods Corporation:
“StoneBridge Business Partners, with its affiliate Ernst & Morris, has obtained for us substantial tax benefits in the form of current tax refunds—and with minimal disruption to our business. They are experts in the cost segregation business and have done a great job for us.”
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