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phone    856.722.5300
email      firm@hfco.com

Cost Segregation

A Cost Segregation Study may be a great opportunity to realize significant potential federal income tax deferral. At Haefele Flanagan, we can develop a cost segregation analysis to support your federal income tax filing position with regard to certain identified items of tangible personal property and land improvements. A cost segregation study is essential to documenting the appropriate classification of capitalized costs.

A Cost Segregation Study will..

  • Segregate construction costs into proper categories for federal tax depreciation purposes.
  • Maximize dollars allocated to personal property (5, 7, &15 year write-offs) categories vs. real property category (39 year write-off).
  • Accelerated depreciation provides faster “write-off” for tax purposes and significant cash flow benefits.
  • Net Present Value of the tax benefit could approximate 2 to 3% of total capitalized costs.

Haefele Flanagan’s cost segregation methodologies are based upon well documented techniques which combine engineering expertise, cost estimating, accounting knowledge, and proficiency in the relative federal income tax authorities.