Cost Segregation is the IRS approved method of re-classifying components and improvements of a commercial building resulting in reduced income tax liability, yielding increased cash flow.
Medical Office Building owners and lessees have an opportunity to increase the cash flow from their buildings, on a going forward basis or by requesting a “Look-Back-Study” which recalculates all depreciation expense from the date of acquisition or build. The catch-up in depreciation expense may then be applied to your next tax return without requiring an amended return, or if you are paying taxes quarterly, the result may be applied immediately by eliminating your quarterly payments.
Medical office buildings, specialty medical facilities and outpatient surgery centers consistently yield the highest benefits from cost segregation. Our history shows that net tax benefits range from 15 to 35 times the after-tax cost of the study.
To use a cost segregation study you must follow the techniques and guidelines issued by the IRS. The study can be used for the purchase, construction/tenant improvements or replacement property in a 1031 exchange. Cost Segregation is a way to leverage your buying power, free up capital, or re-coupe some of the initial capital contributions for construction or improvement costs.
We have provided you the ability to review a variety of cost segregation case studies. Click-here for case studies, that represent a variety of verticals, and all have a short summary on how the owner and or lessees have taken advantage of the tax savings that a cost segregation study provides.
By leveraging our knowledge and experience, you may be able to create leveraged buying solutions and increase the cash flow possibilities of your medical office projects. For a complimentary analysis on how this can be achieved call or email us.
- Auto Dealerships
- Apartments / Multi-Family
- Fast Food / Franchise
- Medical Office Building
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- Senior Living (Independent/Assisted Living)
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- Tenant Improvements