Cost Segregation Studies

A cost segregation study, which can be performed for new construction, recently acquired existing buildings or buildings that have undergone recent renovations, identifies the assets associated with your building and enables you to reclassify them under an accelerated depreciation. A shorter depreciable tax life increases your cash flow. Companies and individuals can change previously classified items from a 39-year depreciation to a 5-, 7- or 15-year rate of depreciation, but the IRS requires that they undergo an engineering-based study in order to qualify for a reclassification.

Lockatong Engineering’s professionals, with their knowledge and experience of building construction, cost estimating and the tax law involving classification of building components, will accurately evaluate, identify and classify your building’s assets into qualifying categories. Our comprehensive report, which can be used by your Certified Public Accountant to reduce your tax liability, provides detailed information and supporting documentation for audit defense.

Cost segregation studies are best suited for these types of properties:

  • Shopping centers
  • Warehouses
  • Office buildings
  • Hotels
  • Restaurants
  • Manufacturing facilities
  • Retail stores
  • Apartment buildings
  • Medical and dental facilities