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Income Tax Reduction for Commercial Real Estate Owners

Jeff Glass

Bedford Cost Segregation is a nationwide provider of engineering-based studies that support tax strategies for commercial real estate owners. These services include:

  • Cost Segregation Studies for accelerated depreciation and increased cash flow.
  • Asset Management Studies to document and write off retired building assets.
  • ReCap Studies to reclassify assets eligible to be expensed under new regulations.
  • Section 179D Studies enabling tax deductions for energy-savings investments.

The information contained in our reports can be used in a variety of ways depending upon where a property happens to be within its life cycle, and depending upon the tax circumstances of the owner. Our clients call us for assistance at these various stages:

Concept/Feasibility – for predicting cash flow, including the effects of cost segregation on depreciation.

Acquisition – maximizing cash flow from day one by having a cost segregation study performed as well as providing asset documentation for future expensing decisions and partial asset dispositions as improvements require repair, maintenance and replacement.

Design/Construction – we can advise on choice of materials, construction methods and documentation of special-purpose mechanical and electrical systems, resulting in converting 39-year assets to 5-year assets. Energy efficiency improvements can be reviewed to qualify the owner for associated tax credits.

Leasing/Management – Properties that were not subject to cost segregation up front can be studied retroactively and tax benefits not taken in the past recovered.

Renovation/Redevelopment – The tax implications of working with aging properties, such as re-configuration or redevelopment stem from decisions involving partial demolition and retirement of building assets that have not yet been fully depreciated, leading to potential tax benefits.

Sale/Demolition – we can assist with projections of depreciation as part of the offering documents, and advise on strategies to maximize write-offs when improvements are to be completely demolished.

Jeff GFor more information, please contact:
Jeff Glass -Business Development
(510) 537-9900
jglass@bedfordteam.com