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Cost Segregation Services

Your company's real estate holdings constitute a huge capital investment. With Buckno Lisicky & Company's engineering-based cost segregation studies, you maximize your real property's financial return by generating significant cash flow savings. Our cost segregation professionals generate cash savings by carving out shorter-lived assets (qualifying for 5, 7, and 15-year write off periods) that are normally imbedded in a building's construction or acquisition costs and generally depreciated over 39 years.

We will "mine out" these buried savings from:

  • New buildings presently under construction
  • Existing buildings undergoing renovation, remodeling, restoration, or expansion
  • Purchases of existing property
  • Office/facility leasehold improvements and "fit-outs"
  • Post-1986 real estate construction, building acquisitions, or improvements where no cost segregation study was performed (even though the statute of limitations previously closed on the property construction/acquisition year)

With our cost segregation study, you have indisputable evidence for massive tax savings that will withstand IRS scrutiny. We provide full documentation, employing engineering and costs estimating procedures recognized in IRS rulings and judicial decisions. A complete "audit trail" traces derived unit costs from contract documents and other source data. Your property is categorized into shorter-life classes based on applicable tax authorities.

During a cost segregation study, we:

  • Physically inspect the property
  • Examine architectural/engineering drawings and specifications for potential asset reclassification
  • Analyze cost data, including the contractor's application of payments, change orders, owner-incurred costs, and indirect disbursements
  • Prepare an itemized list of property units qualifying for shorter-life classification based on relevant income tax authorities
  • Apportion direct labor, material components, and indirect costs based on engineering drawings/specifications
  • Reconcile total costs per the engineering analysis to capitalized project costs