Alternative Minimum Tax consequences are not a result of cost segregation. Nor is cost segregation accelerated depreciation. Decisions regarding cost segregation and accelerated depreciation are independent by the four options as illustrated in the following matrix:

 

 

Cost Segregation
Straight Line Depreciation

  

No Cost Segregation
Straight Line Depreciation

 
 

Cost Segregation
Accelerated Depreciation

 

  

No Cost Segregation
Accelerated Depreciation

 

Accelerated depreciation increases the amount of depreciation taken in early years of ownership but triggers alternative minimum tax consequences. The alternative minimum tax consequences are severe enough that many investors avoid accelerated depreciation.

A cost segregation study delivers the benefits of more depreciation sooner without the unfavorable alternative minimum tax repercussions. There are no alternative minimum tax consequences resulting for using cost segregation. Cost segregation with straight-line depreciation increases depreciation by 50% to 100% during the early years of ownership without triggering alternative minimum tax penalties.

Cost segregation produces tax deductions and reduces federal income taxes across the country and in every size market. Below are just a few examples of where cost segregation generates meaningful tax deductions.

City:

  • New York, NY
  • Houston, TX
  • Washington, DC
  • San Francisco, CA
  • Memphis, TN
  • Dallas/Ft. Worth, TX
  • Denver, CO
  • Phoenix, AZ
  • Orlando, FL
  • Philadelphia, PA
  • Cincinnati, OH
  • Madison, WI
  • McAllen, TX
  • Chicago, IL
  • Tulsa, OK
  • Austin, TX
  • Dayton, OH
  • Honolulu, HI
  • Stockton, CA
  • Boise, ID
  • Charlotte, NC
  • Durham, NC
  • San Jose, CA
  • Nashville, TN
  • Baton Rouge, LA
  • Buffalo, NY
  • Birmingham, AL
  • Indianapolis, IN
  • Manchester, NH
  • Oxnard, CA

Cost segregation audit produces tax deductions for virtually all property types.

Property Type:

  • Truck terminal
  • Airplane hangar
  • Retail
  • Apartments
  • Convenience store
  • Single-tenant retail
  • Movie theater
  • Health spa
  • Self-storage
  • Bowling alley

Almost every industry, including the following, can generate cost-efficient tax deductions by using cost segregation.

Industry:

  • Textile product mills
  • Electronic and appliance stores
  • Truck transportation
  • Arts, Entertainment, and Recreation
  • Day care facilities
  • Furniture stores
  • Building supply dealers
  • Plastic and rubber products manufacturing
  • Chemical manufacturing
  • Computer and electronic manufacturing