Introduction

Eugene property owners are capitalizing on substantial tax breaks by undertaking cost segregation studies. Such an engineering-based study is a powerful tool that allows commercial and residential rental property owners to depreciate property more quickly by reclassifying assets. Eugene

The Cost Segregation Process

It requires engineering analysis and can break a building into various asset classes that are eligible for more aggressive depreciation than the usual 39-year time frame used for commercial properties or the 27.5-year time frame used for residential rental properties. Rather than write off a building as a whole, cost segregation reclassifies certain building components into various classes of 5, 7, and 15-year.

This begins with a full survey of the building in question that will be conducted by engineers who are able to identify and catalog every system, every piece of equipment and every building improvement. These professionals can then assign value to these assets, as determined by the IRS, resulting in large accelerated depreciation expenses that provide significant tax reductions now for property owners in Eugene.

Advantages for Property Owners

Investors in Eugene can reap many benefits from tax savings from cost segregation studies:

• The ability to reduce the tax burden paid this year is an immediate improvement to cash flow.
• Faster depreciation on eligible components for buildings and improvements to real property
• Boosted returns by way of effective tax strategies
• Back-dated benefits for properties purchased in the past
• Professional records to meet IRS guidelines and defend against an audit

Who Might Be a Candidate for Cost Segregation?

A Cost Segregation Study in Eugene is most beneficial for particular types of properties, including:

• For commercial buildings worth more than $500K
• Investors who own or manage apartment buildings and other multi-family housing developments
• Owners of industrial properties and warehouses
• Medical office buildings and professional service buildings
• Shopping Centers, and Mixed Use Projects
• High-income property owners looking to claim instant deductions

What the Study Covers

A professional cost segregation study provides detailed analysis and records in the following manner:

• A thorough engineering review of every system and element within the building.
• Review of architectural drawings, analysis of construction documents
• Current IRS guidance and tax case law in this area govern asset classification, as do the rulings in cases brought to the U.S. tax court.
• A cost allocation report with professional quality, accompanied by calculations and description of the methods used
• IRS-compliant document packet prepared for direct upload into your preferred tax software

Eugene Market Specialist

We are very familiar with the nuances of Eugene’s commercial real estate, whether it is office buildings in the downtown area or retail space in the suburbs. As a result, we will know what to include and where to spend money for the commercial property you need appraised.

Our Company: Why You Should Choose Us

Eugene cost segregation engineers pair engineering skills and tax knowledge together to provide the largest possible benefits to you, the property owner. All studies we deliver include full audit assistance and are prepared in accordance with IRS protocols. Additionally, we carry professional liability insurance.

Every analysis is prepared by qualified, certified engineers and tax specialists. With our help, you can meet all federal compliance rules while taking full advantage of the tax breaks provided for accelerated depreciation deductions.

Getting started

Interested in cost segregation on your Eugene property? Reach out to us today to set up a free consultation and property assessment where we can discuss your circumstances and provide rough projections of how much you might save given your property type and when you purchased it. Contact our team today

Our typical turnaround time is 4 to 6 weeks. So when your study is completed you can put the money to work faster. Find out how cost segregation can improve returns for your real estate portfolio.