An engineered cost segregation study is the most effective tax saving strategy utilized by CPA’s and accountants for accelerating real estate tax depreciation deductions. Engineered cost segregation studies provide a quantified, qualified and verifiable analysis and segregation for the depreciation of assets classified as real estate into the much shorter class lives of 5, 7 and 15 years that are provided for items of personal property. This tax savings strategy can result is significant tax deductions at a minimal cost.
The greatest tax savings are realized by performing an engineered cost segregation study that can identify not only the obvious assets eligible for cost segregation but can also take advantage of the ability of experienced engineers and construction cost estimating experts to identify hidden or ancillary assets for cost segregation.
“In order to calculate depreciation for Federal income tax purposes, taxpayers must use the correct method and proper recovery period for each asset or property owned. Property, whether acquired or constructed, often consists of numerous asset types with different recovery periods. Thus property must be separated into individual components or asset groups having the same recovery periods and placed-in-service dates in order to properly compute depreciation”
…Internal Revenue Service Audit Technique Guideline
Baden Tax Management provides real estate tax saving strategies for CPA’s and accountants as well as for property owners including tax abatement applications and monitoring, cost segregation studies and ad valorem property tax advisory services. Baden’s staff of CPA’s, accountants, appraisers, property tax consultants and construction cost estimating experts have years of experience in all areas of real estate tax saving planning. Baden Tax Management is the only service provider in the industry to bundle tax saving services for new construction by offering a program that combines tax abatement application services, cost segregation, and ad valorem property tax advisory services into a package that reduces costs and provides complete and comprehensive plan to reduce property taxes and increase cash flow for the property owner.
Baden Tax Management has years of experience providing tax abatement, cost segregation and property tax consulting services across all industries and property types. Baden has been performing these services for over fifteen years and has saved our clients millions of dollars through our abatement, cost segregation and property tax consultant programs.