The Analysis Benefits

The primary goal of a cost segregation study is to accelerate the federal tax depreciation of your facilities whether they are newly constructed or acquired. You also have the ability to perform these analyses on facilities placed in service in prior years without the need to amend past tax returns. The direct benefit from these analyses is increased depreciation in the early years of the ownership of the facility resulting in increased tax savings and more available cash flow. 

BDO Seidman, LLP’s Cost Segregation Team, which is comprised of engineers and tax professionals, has analyzed over $9 billion in construction and acquisitions since 1996 alone, providing tax saving to clients large and small. Their experience includes studies of facilities similar to yours.

The engineers from BDO Seidman, LLP will provide you with a proposal for performing this analysis after reviewing some very basic information concerning your facility. This proposal will identify the estimated first-year tax savings, the net present value of the tax savings over the remaining tax life of the facility and the professional fees associated with performing the analysis. Their fees are not contingency-based, but rather based on the hours required to perform the work. 

Additionally, BDO Seidman, LLP provides a benefit-to-cost ratio in the proposal which identifies the multiple of their fees you will receive in tax savings the very first year. The positions taken with regard to property classifications are well documented and supported in the report provided as part of the study. Please be assured that the proposal is provided to you at no cost. There is no risk involved, only an upside potential in determining the magnitude of the tax savings that would be realized as a result of our analysis.

BDO Seidman, LLP’s engineering group has distinguished itself on a national basis by helping their clients realize significant tax benefits, and we believe that they may be able to provide similar benefits to other companies. Their studies have consistently withstood IRS scrutiny through the development of a defendable approach to asset classification.