Cost Segregation Services

The Cost Segregation Services Practice at Porto Leone Consulting LLC offers concierge-level cost segregation services to allow our clients greater profitability by maximizing their tax benefits on owned real estate and leasehold improvements. Our Cost Segregation Team members possess the engineering, appraisal and cost segregation skills and experience required to perform a quality Cost Segregation Study that will withstand IRS scrutiny.

Over the years, our diligent work has provided our clients with a net present value benefit of hundreds of millions of dollars, allowing for the opportunity to invest in other real estate-related properties.

In our Cost Segregation Studies we analyze costs associated with the construction, acquisition or improvements to commercial real estate and allocate these costs to the appropriate Internal Revenue Code (IRC) §1250 real property (39-year or 27.5-year property) or §1245 personal property (typically five-, seven- and 15-year property) categories. The incentive in a Study is to identify as much supportable IRC §1245 personal property as possible because the after-tax economic benefit of every dollar reclassified from 39-year real property to five-, seven-, and/or 15-year personal property can yield a five percent to 60 percent tax savings, based on the building type and asset classification of building components.

It’s Never Too Late

Proper tax planning, including the use of a Cost Segregation Study, can result in maximizing tax deferral benefits from accelerated depreciation in situations such as:

  • Construction of a new facility
  • Acquisition of real estate
  • Renovation, remodeling or expansion of an existing facility
  • Leasehold improvements
  • Review of historical categorization of capital expenditures (lookback analysis).

Many businesses and taxpayers who own real estate often do not take full advantage of the cash flow benefits associated with a Cost Segregation Study. Whether you have a new construction project, an acquired building, or another real estate-related issue, our team is available to review with you the potential benefits of a formal Cost Segregation Study.

The benefits of working with our team include:

  • A free estimate of the net present value benefit of a Cost Segregation Study prior to commencement of the analysis so you can make an informed decision about whether a Study is right for you
  • A hands-on, concierge approach from our senior professionals on every project
  • A formal, detailed site inspection of the property and review of any available plans and construction documents
  • Constant feedback and updates on your Study progress
  • Utilization of an engineering-based approach, identifying qualifying property and providing support for our conclusions
  • A detailed work product, including a report, in which you can be confident.