Learn why TCC is the leader in helping companies find returns on existing assets.
"TCC's expert knowledge kept our reporting accurate and found benefits we missed." - Sr. VP, Tax, Fortune 500 Retail
TCC provides a detailed engineering review as part of our study. Without disrupting your business, we identify and confirm the costs of all potentially qualifying assets.
Our cost segregation studies can be performed upon completion of the property's purchase/construction/improvement, as well as retroactively, years later. In both cases, tax savings are maximized by reclassifying property and assets to accelerate depreciation.
Eligible Property and Assets
Within buildings that were constructed, expanded, remodeled or purchased since 1987, a number of assets can be eligible for cost segregation. These include certain electrical/mechanical systems, decorative lighting or moldings, communication systems, distribution panels and wiring, wall and floor coverings, HVAC systems and exterior site improvements.
Our process begins with a review of all blueprints, architectural drawings and mechanical/electrical plans. From there, TCC's engineers perform a site visit to physically identify all relevant components of the structure and fixed assets. Our finance team confirms the stated amounts and gathers supporting documentation from contractors and property owners. Updated depreciation schedules are then prepared to reflect the reclassification of certain assets.
A Cost Segregation study is an investment that yields immediate return. By accelerating depreciation, significant tax savings can be realized much sooner than the standard 27.5 or 39 year schedule. Certain fixed assets can be depreciated over five, seven, or 15 years. The study maximizes depreciation deductions while increasing cashflow and net present value.
Cost Seg studies rely on facts supported by documentation. Our engineers are involved directly, taking a methodical approach to identifying real costs, as opposed to relying on estimates. Blueprints, specifications, job reports, change orders, payment requests, invoices and contracts are all used to substantiate unit costs. With that level of construction-related documentation, TCC ensures an audit-ready study.