Cost Segregation Overview
Residential rental property is depreciated over a lengthy 27.5 years whereas commercial real estate is depreciated even longer over 39 years. IRS rules allow non-building components such as personal property and land improvements to be segregated from the building and depreciated more rapidly, generally over 5, 7, and 15 years. This type of analysis, called a Cost Segregation, drastically improves cash flow by accelerating tax depreciation deductions. Such a study generates benefits typically between 2.5 to 10 percent of the building’s cost.
» Depreciation periods and asset class lives
How We Help New Jersey Taxpayers
ICS Tax provides free consultations and benefit estimates on all cost segregation studies. Our deliverables are reviewed by one of our in-house Certified Cost Segregation Professionals (CCSPs), which is the high credential in the cost segregation industry.This credential is provided by the American Society of Cost Segregation Professionals (ASCSP) only to those who have at least 7 years and 7,000 hours of direct cost segregation experience, passed a rigorous exam, and meet ASCSP background checks. We offer free audit support on all of our studies and if applicable, can draft Form 3115, Application for Change in Accounting Method. All cost segregation studies are reviewed and certified by one of our in-house Certified Cost Segregation Professionals.
About Us
ICS Tax is a consulting firm providing innovative tax planning strategies. ICS collaborates with taxpayers and their tax professionals to identify credits and incentives that reduce tax liabilities and increase profitability. We serve Newark, Jersey City, Paterson, Elizabeth, Edison and all other cities within New Jersey and throughout the nation.