Cost Segregation

At Trophy Point, we provide cost segregation and cost recovery studies for a wide range of property types and owners. Cost segregation is the process of identifying assets and their costs, and classifying those assets for federal tax purposes. Through this process, certain costs that were previously classified as being subject to 39-year depreciation can, instead, be reclassified as tangible personal property or land improvements with 5, 7 or 15 year rates of depreciation utilizing IRS allowable accelerated methods.

We utilize our experience in construction cost consulting and quantity surveying, as well as our familiarity with components of capitalized building costs, to achieve the maximum benefit for our clientele.  Our experience with all aspects of construction, construction and payment documentation, and our expertise on existing buildings and facilities sets us apart from our competitors in this field.

Our studies provide an effective and substantiated tool for identifying and reclassifying capital expenditures, allowing accelerated depreciation at tax time.  The benefits of our cost segregation studies include:

  • Maximized tax deferrals
  • A reduction of current tax liability
  • An immediate increase in cash flow
  • The ability to claim missed depreciation deductions from previous tax returns
  • The ability to claim the depreciated value of property "taken out of service" to facilitate building improvements or renovations