Real estate assets: significant tax deduction and tax credit opportunities.
BDO’s engineering-based Cost Segregation Services team can help owners of business real estate assets increase cash flow by accelerating federal tax depreciation of construction-related assets. Opportunities exist for newly constructed buildings, newly acquired buildings, buildings constructed or acquired in prior years, and significant remodel, renovation, or expansion activities. In addition, tax credits and deductions related to green and alternative energy improvements may be available. Depending on the type of building and cost, the current increased cash-flow and time-value benefits are often significant.
The IRS has stated that cost segregation studies should be performed by “personnel competent in design, construction, and estimating.” BDO professionals have this experience and have provided cost segregation services to our clients for over 30 years. Our in-house team is comprised of professional engineers, contractors, and real estate tax professionals, who provide a full-service approach to cost segregation.
BDO performs detailed engineering cost segregation analyses to increase clients’ cash-flow. Our team will:
- Identify construction-related assets that qualify for accelerated depreciation and bonus depreciation where applicable.
- Perform retroactive cost segregation analyses of facilities that were either constructed or acquired in prior years, without amending any returns.
- Determine available federal and state Historic Tax Credits related to rehabilitations of older buildings.
- Identify green energy tax incentives for newly constructed or renovated buildings.