Cost Segregation

Cost Segregation, Construction Tax & Energy Planning A cost segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods to accelerate the return on investment in property. Whether newly constructed, purchased or renovated generally over the last 10 years, the components of your building may be properly classified through a cost segregation study into accelerated recovery periods for computing depreciation deductions. The study carves out with forensic engineering detail into 5, 7 and 15 year lives, certain qualifying portions of your building that are normally buried in 39 or 27½ year categories. Done proactively, prior to or during the design/construction process, CWA can work to help maximize your allowable depreciation, improve the functionality and energy efficiency of your design, and help capture all available federal, state and local utility energy tax incentives.