Cost Segregation
Gross Collins has been a trusted partner for close to thirty years. The firm has been by our side as we faced the various challenges our competitive industry provides. The firm has been a vital part of the team which guided us to the successful company we are today.
Tracy Pierce, COO
Precision Concrete Construction Inc.
Reducing Taxes & Increasing Cash Flow
HLB Gross Collins, P.C. has
formed various strategic alliances toprovide tax optimizations
strategies to our clients worldwide.
Our asset optimization practice includes strategic tax consulting, cost segregation
analysis, and property valuation. Our
mission is to enhance the value of your business through lower taxes and
increased cash flow.
Cost Segregation
As a strategic tax tool, cost segregation allows companies to accelerate
facility-related deductions, often resulting in significant tax savings. If
you've recently (since 1986) purchased, built, improved or added to your real
estate holdings, cost segregation can significantly impact your company's
financial landscape.
As a result of a cost segregation analysis, a company can significantly
improve its ROI as well as enhance the debt and risk structure of its real
estate portfolio.
How it Works
A company's
real estate holdings typically make up a substantial part of its assets. Cost
segregation analyzes the individual components of a real estate portfolio,
segregating the costs as personal property, land improvements or building
assets. The accelerated depreciation resulting from the study markedly
decreases income taxes and increases cash flow.
What Types of Assets
Real-estate investments best suited for a cost
segregation study include all post-1986 real-estate construction, building
acquisitions or improvements, new buildings under construction, the purchase or
acquisition of existing property, existing buildings undergoing renovation or
expansion, and office leasehold improvements and "fit-outs."
The Bottom Line
Reclassifying elements of a building from a
thirty-nine year to a five year recovery period typically results in a NPV
benefit of 21 cents for each reclassified dollar. Seven or fifteen year
reclassification typically results in 19 and 11 cents NPV benefits,
respectively. Actual NPV savings will
vary depending on corporate discount and effective tax rates.
HLB Gross Collins, P.C. consistently demonstrates integrity, professionalism, and technical ability. Additionally, they adhere to time deadlines, and most of all, display a concern and passion for our best interests.
Curtis A. Pollock Co-COO & J. Bruce Bolick CFO
Greystone
Gross Collins has been a trusted partner for close to thirty years. The firm has been by our side as we faced the various challenges our competitive industry provides. The firm has been a vital part of the team which guided us to the successful company we are today.
Tracy Pierce, COO
Precision Concrete Construction Inc.