Cost Segregation Services
Improve cash flow and maximize tax deductions through a detailed engineering-based cost segregation study.
Tax Services
Expedite Business Property Tax Deductions
Whether you built, purchased, or improved a commercial property, you may have an opportunity to reclassify qualifying assets and accelerate depreciation. Cost segregation studies often create significant current-year tax savings without filing amended returns and may allow for “catch-up” depreciation on previously placed-in-service properties.
How Cost Segregation Works
The key to a successful study is that the allocation is based on an engineering approach and thorough work-paper documentation. We work closely with construction engineers who have deep knowledge of the tax code, and who have a track record of explaining and defending IRS inquiries into cost segregation since 1981.
5-7 years recovery
Tangible Personal Property
Assets that support specific equipment or business function rather than the building itself — the fastest to write off.
Typical Items We Reclassify
- Equipment foundations
- Dedicated electrical distribution
- Process piping
- Specialized HVAC, exhaust & ventilation
- Security & access control systems
- Specialty plumbing
15 years recovery
Land Improvements
Site work outside the building envelope that carries a defined, shorter useful life.
Typical Items We Reclassify
- Parking lots
- Sidewalks & curbs
- Landscaping
- Irrigation systems
- Exterior & parking lot lighting
- Fencing & gates
- Retaining walls
- Underground utilities
39 years recovery
Real Property
The building structure and permanent components, depreciated over the longest recovery period.
Typical Items We Reclassify
- Building shell & structural framing
- Roof & foundation
- Exterior walls & windows
- Building-wide HVAC
- General plumbing systems
- General electrical systems
- Permanent interior walls
- Elevators
Our Approach
Successful cost segregation studies require more than tax expertise. DMJPS works alongside experienced construction engineers to perform detailed engineering-based analyses supported by thorough work paper documentation.
Using construction drawings, project records, and tax guidance, we carefully evaluate your property to identify qualifying assets and allocate costs to the appropriate depreciation categories.
Review
We review construction documents, project records, and available cost information to establish a complete understanding of your property and its eligible assets.
Identify
Our accounting and engineering professionals identify assets that may qualify for accelerated depreciation based on their function, use, and applicable tax guidance.
Allocate
We allocate direct and indirect construction costs, including eligible architectural, engineering, permit, and contractor expenses, to the appropriate asset classifications.
Deliver
You receive a detailed engineering-based report with supporting documentation that substantiates the asset classifications and depreciation positions for your tax records.
Our People
The Team Behind Your Study
Our clients tell us they want to see and get to know the person and the local office they’ll be working with. Explore the DMJPS specialists who lead cost segregation engagements, then connect with the office nearest you.
Industry Experience
From construction and manufacturing to healthcare and real estate, see how we help organizations across North Carolina and surrounding states.
Keep Exploring
See our full range of services and learn how DMJPS can support your business through changing needs and new opportunities.
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