Depreciations One Can Appreciate

For most businesses, property represents a substantial investment. While the IRS lets you recoup some property costs through depreciation on federal tax returns, the deductions — and the resulting tax benefit — are usually spread over a long time period — 39 years for commercial property and 27.5 years for income-producing residential property. Cost segregation is an IRS approved method of separately depreciating building components unrelated to its operation
and maintenance over shorter time periods, usually 5 to 7 years.

Yount, Hyde & Barbour’s Cost Segregation Services Team specializes in helping clients realize tax benefits sooner and improve cash flow by accelerating federal tax depreciation deductions and taking bonus depreciation under post-September 11, 2001 federal tax legislation.

To accurately analyze and depreciate commercial and industrial real estate holdings, our team utilizes professional engineers, contractors, and tax professionals with experience in both the technical and financial aspects of building design and construction. Our conclusions are based on sound engineering principles and are supported by IRS regulations, rulings, and case law.

As part of our service, we provide a report in which we thoroughly document and support each of our recommendations regarding depreciation and tax positions. As a result, your business often can realize an immediate improvement in cash flow, and a significantly better tax position.

Services We Provide

Accelerating Federal Tax Depreciation Deductions
Comprehensive Review of Construction Invoices
Cost/Benefit Analysis
On-site Building Inspection (Where Needed)
Reclassification of Assets on Previous Years’ Returns
Review and Analysis of Real Estate Holdings
Written Cost Segregation Study

Cost Segregation Team
Our professionals have undergone training in the areas related to cost segregation and have significant experience in conducting cost segregation studies. We are active members of the American Institute of CPAs (AICPA) and the Virginia Society of CPAs (VSCPA). Our team members also receive continuing education on an ongoing basis to stay up to date with the most current information and trends.