Cost Segregation



Generating positive cash flow while at the same time managing existing debt obligations and assessing upcoming debt maturities can be challenging. GRS | Capstan can provide value throughout the property’s ownership cycle identifying and “segregating” various building components for tax purposes. Cost Segregation analysis can assist in improving a property’s near term cash flow and minimizing capital gains tax upon the sale of the asset.

Cost Segregation combines an engineering study with an IRS-accepted tax strategy used to accelerate depreciation deductions by identifying certain building components and allocating them to an accelerated depreciation schedule of 5, 7 or 15 years. No new deductions are identified, but rather deductions are moved forward that might otherwise take 27.5 or 39 years to fully realize. Once performed, the accelerated depreciation schedules and resulting tax deferral greatly improves cash flow.

A cost segregation study may be advantageous if:

• Building a new facility
• Acquiring an existing building,
• Improving, renovating or expanding an existing building, or
• Conducting leasehold improvements