more about the industry
Since 2001, ELB Consulting, Inc. has helped its clients save millions of dollars and is one of the most experienced and respected firms in the United States providing the highest level of cost segregation studies and commercial real estate services. Our report methodology differentiates from the others by utilizing the "fully engineered and accounted for" methodology and delivering absolute audit protection. It also will serves as a fixed asset tool for the easy retirement of assets in the future. Our competitors do not go to this level of detail and accuracy.
ELB Consulting, Inc.
experience and expertise
commercial real estate tax & energy solutions
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What is Cost Segregation?
Under United States tax laws and I.R.S. accounting rules, cost segregation is the process of identifying personal property assets that are grouped with real property assets, and separating out personal assets for tax reporting purposes. The principle objective of a cost segregation study is to increase cash flow from newly constructed buildings, acquired properties and/or renovations by accelerating depreciation expense deductions.
A cost segregation study identifies and reclassifies personal property assets to shorten the depreciation “lives” for taxation purposes, thus reducing current income tax obligations. Personal property assets include a building’s non-structural elements, exterior land improvements and indirect construction costs. As such, the cost segregation study reveals all construction-related costs that can be depreciated over a shorter tax life (5, 7 or 15 years) than the building which has a 39 (or 27.5) year life.
What are the Energy Performance Solutions?
The Energy Policy Act of 2005 (“EPAct 2005”) established new federal tax deductions for all qualifying investment costs in commercial buildings that improve the energy efficiency of the whole building or for each of three building subsystems: lighting and lighting controls; HVAC/Hot Water; and the building envelope. Federal tax incentives are available for both newly constructed buildings and retrofits of existing buildings placed in service from January 2006 through December 2013. There is a pending bill in Congress to extend these benefits for 2014-2015, and some in Congress propose a permanent extension.