Cost Segregation | Retail Shopping Centers | Malls  

If your clients acquire real estate valued at $1 million or more, they may be eligible for substantial federal and state tax savings through a professionally conducted Cost Segregation Study. A cost segregation study involves certain assets within the transaction that may qualify for accelerated depreciation. The results of accelerated depreciation are larger tax deductions over a shorter period, meaning increased cash flow and lower capital costs.

Retailers engage us to assign the proper depreciation life to their real estate assets to ensure their capital costs are recovered as soon as possible. Even purchased facilities may have substantial assets qualifying for accelerated depreciation that can lower taxable income as some of our recent studies show:

Shopping Center Complex:
A professionally completed cost segregation study for a similar shopping center complex valued at $14.5 million resulted in an additional $1.45 million in depreciation over the first four years of service. The income taxes deferred over the same time period amounted to $610,000 (using a 39% combined federal and state income tax rates.)

Virginia Shopping Mall:
A 20-shop strip-mall anchored by a supermarket was purchased for $2,000,000 in 2000. We located 108 qualified assets: $242,000 in 15-Year and $221,000 in 5-Year. Under the recently enacted Revenue Procedure 2002-19, the first year's additional depreciation was $161,968 with a tax savings of $72,886.

California Mini-mall:
A new supermarket with 7 shops built for $3,700,000. We located 157 assets: $888,000 in 15-year and $898,000 in 5-Year. The first year's depreciation is $273,075 with a tax savings of $122,884.

Cost segregation studies can be performed on current, as well as on past, real estate transactions. Contact a Cost Segregation Partners professional for a free cost benefit analysis on all of your real estate transactions, past or present.

Contact Information:

Cost Segregation Partners is one of the nation's leading providers of cost segregation and consulting services to real estate owners. Cost Segregation Partners also assists accountants and CPA firms in providing services to their qualified clients who have constructed, bought, expanded or remodeled real estate.

Contact us Via the Web or Toll Free: (800) 591-0148

Grant Keppel, CPA National Director		Jennifer Birkemeier, CPA Manager