{"id":28,"date":"2018-11-25T19:41:57","date_gmt":"2018-11-26T00:41:57","guid":{"rendered":"http:\/\/criteriumwebhosting.net\/Criterium-McWilliam\/?page_id=28"},"modified":"2019-04-11T15:48:25","modified_gmt":"2019-04-11T19:48:25","slug":"cost-segregation","status":"publish","type":"page","link":"http:\/\/criteriumwebhosting.net\/criterium-mcwilliam\/commercial\/cost-segregation\/","title":{"rendered":"Cost Segregation Studies"},"content":{"rendered":"

Engineering-based analysis is a three-legged stool on which a thorough understanding of a commercial property rests.\u00a0 Property Condition Assessments <\/strong>and their less extensive counterpart (Building Inspections) are the first leg; Capital Needs Assessments<\/strong> are the second, and Cost Segregation Analysis<\/strong> (CSA) is the third.\u00a0 Less familiar than the first two legs but equally important, a Cost Segregation Analysis is a tool used to maximize the tax benefits of owning a commercial property.<\/p>\n

The building and its structural components can be depreciated over a 15-year period; but everything inside the building \u2013 furnishings, fixtures, flooring and the like \u2013 can be depreciated more quickly, over 5 to 7 years. Because most investors hold commercial properties for 10 years or less, this is a significant advantage, making it possible to extract as much as 30 percent of a building\u2019s value during the accelerated depreciation period.\u00a0 These savings are real.\u00a0 Money the owner isn\u2019t paying in taxes can be used for other purposes.\u00a0\u00a0 Equally important, the projected tax savings can make the numbers work on a project that does not seem financially viable, leading lenders to approve a purchase loan they might otherwise reject.<\/p>\n

Understanding the Numbers<\/h4>\n

IRS rules require<\/em> engineers to prepare a Cost Segregation Analysis, and Criterium-McWilliam Engineers is one of the few consulting engineering firms with the expertise to do it.\u00a0 In fact, we were one of the first to begin offering the service more than 10 years ago.\u00a0 Most engineers want to focus on buildings; they don\u2019t want to think about the numbers.\u00a0 Many of our engineers are trained to look at both.\u00a0 They are equally comfortable focusing on the structural components of a building and the numbers that inform the tax implications of a transaction.<\/p>\n

By undertaking the Property Condition Assessment<\/strong>, the Capital Needs Assessment<\/strong> and the Cost Segregation Analysis<\/strong> \u2013 all three legs of our three-legged stool — simultaneously, Criterium-McWillaim Engineers can use a single inspection to produce all the reports \u2013 a cost-effective strategy that we highly recommend.<\/p>\n

For investors considering whether to purchase a commercial property and for real estate brokers trying to make a marginal transaction feasible, a Cost Segregation Analysis may be essential and Criterium-McWilliam Engineers is uniquely qualified perform it.\u00a0 Contact us<\/strong><\/a> for more information about how Criterium-McWilliam Engineers can create a solid foundation \u2500 a three-legged information stool \u2500 for your commercial real estate transaction.<\/p>\n","protected":false},"excerpt":{"rendered":"

Engineering-based analysis is a three-legged stool on which a thorough understanding of a commercial property rests.\u00a0 Property Condition Assessments and their less extensive counterpart (Building Inspections) are the first leg; Capital Needs Assessments are the second, and Cost Segregation Analysis (CSA) is the third.\u00a0 Less familiar than the first two legs but equally important, a…. <\/p>\n

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