Cost Segregation is a tax strategy for acquired, renovated, and newly built buildings that provides the benefit of accelerated depreciation, which reduces taxes and increases cash flow. Building owners can take advantage of the ability to look back and “catch-up” lost depreciation deductions without having to amend a tax return. At BRAYN, Cost Segregation studies are performed under the responsible charge of professional engineers with industry experience in Construction to ensure the most thorough and comprehensive study.
A traditional cost segregation study allows companies and individuals who have constructed, acquired, or renovated real estate to increase cash flow by accelerating depreciation tax deductions.
ll of BRAYN’s studies are led by licensed professional engineers with design and construction experience. We leverage constantly changing regulations, construction financing, and advancements in design and construction to maximize cash flow to you or your clients. A Cost Seg+ study is a more comprehensive tax strategy for real estate which includes:
ELIGIBLE BUSINESSES THAT CAN TAKE ADVANTAGE OF COST SEG+ Businesses in any industry who own their own commercial building Commercial property owners Income-producing residential property owners |
Office Building Acquired and Improved in 2020 |
Acquisition | $2.5M |
Improvements | $500k |
Combined Tax Rate | 37% |
Accelerated Tax Deductions Year 1 | $900k |
Repairs and Partial Disposition Deductions | $100k |
Increased Cash Flow Year 1 | $350k |
NET PRESENT VALUE | $250K |
RS Circular 230 Disclosure - To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advise contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
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