The Frazier & Deeter cost segregation CPA specialists offer systematic and comprehensive analysis of all costs associated with the construction or purchase of a new building, rehabilitation of an existing facility, or relocation with leasehold improvements. Our experienced CPAs help maximize available depreciation benefits.
A cost segregation study performed by a CPA expert enables commercial property owners to significantly improve their investment returns by reducing federal income taxes, increase after-tax cash fl ow and debt service ability. With Frazier & Deeter, your team will be comprised of specially trained professionals who follow standard engineering and cost estimating methodologies.
The engagement approach is variable, depending upon the magnitude and diversity of your real estate portfolio, as well as your tax goals and strategies. We have developed three main approaches designed to help you address these issues. Each of these programs will be tailored to meet your needs.
Complete Analysis Approach
A Complete Analysis Approach is standard procedure for single facilities placed in service, but can be performed on larger portfolios. This approach involves a complete review of general contractor costs, architect and engineering fees, additional owner-incurred costs, and construction drawings in order to maximize both tax benefits and document supportability.
A Sample Approach
addresses larger portfolios of similar construction
. Certain facility types lend themselves more easily to standardization of construction methods and materials, including restaurant chains, hotels, and retail facilities.Read More
The similarity of building footprints, fixture orientations, and facility processes allow for the selection of a representative sample of facilities to be analyzed in depth. The basic assumption of this approach is the cost of similar process related systems is directly proportional to project construction cost. Based on this assumption, the results of the sample set analysis will be extrapolated to the remainder of the properties.
Modified Sample Approach
A Modified Sample Approach requires a thorough examination of all construction costs and available documentation relating to a sample set of similarly constructed facilities. The assumption upon which this approach is based is the same as with the sample approach but, through the use of a software program, will allow for compression or expansion of line item costs and estimates on a per facility basis and an individual contract basis. Variance factors applied to each facility are determined by the total construction cost, facility construction location, placed-in-service date, and quantity take-offs with construction cost estimates generated from the sample set.