If you have purchased, constructed or improved a building, odds are that you will benefit from a cost segregation study. The cost of a building includes many assets which qualify for a considerably shorter tax life than the building as a whole. We can identify and value these shorter lived assets so that depreciation deductions can be claimed sooner and capital can be reinvested to create even greater return for investors.

Cost segregation involves analyzing the cost components of a real estate project and segregating costs for depreciation purposes as personal property, land improvements or building. This study results in increased cash flow by accelerating depreciation in the early years of the project's life. Your company's real estate holdings constitute a huge capital investment. With Hutchinson and Bloodgood LLP's accounting/engineering-based cost segregation studies, you can enhance your real property's financial return by generating significant cash flow savings.

Cost segregation benefits:

• Reduce Corporate Income Taxes
• Reduce Individual Income Taxes
• Increase Cash Flow
• Maximize Tax Credits
• "Catch-up" Depreciation on Assets
• Reduce Property Taxes

How Much Can You Save on Taxes?
Our cost segregation professionals generate cash tax savings by carving out shorter-lived assets (qualifying for 3, 5, 7,10, 15 or 20 year write-off periods) that are normally imbedded in a building's construction or acquisition costs. A $1,000,000 reclassification of our client's construction cost, from the traditional 39-year depreciation period to the shorter five year period, resulted in the improved cash flow savings via tax deferral, of approximately $300,000 over the first five year period.

Recapture Missed Opportunities
We often produce results for properties that have been depreciating for as many as ten years. Using the results, we can calculate current tax deductions based on the cost segregation study. Your Hutchinson and Bloodgood LLP team consists of engineering and tax specialists with advance knowledge in cost segregation studies.

Do You Qualify?
Answer yes to these three questions and you qualify: Can you benefit from accelerating tax depreciation on your real estate holdings? Have you purchased, constructed or improved your real estate holding any time after 1986? Do you expect to retain your real estate holding for at least the next three to four years? For a free estimate of potential savings, contact us today.