Cost Segregation
HLB Gross Collins Varied

Cost Segregation

HLB Gross Collins has been an outstanding partner for our business for over 15 years. Wayne Gilmore and the partners and staff at HLB Gross Collins have supported our multi-national business tax and advice needs effectively and efficiently. Whether evaluating the tax and business consequences of an international or domestic job or completing the inevitable paperwork and tax returns required, HLB Gross Collins always provides the support we need. I highly recommend HLB Gross Collins to any business.

Steven R. Baardson, CFO & General Counsel

TransGlobal Energy, 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.

Brock Built Homes has been pleased to work with Gross Collins since 2006. Gross Collins is so much more than what we were used to getting from our former accounting firm. Gross Collins has provided excellent advice, recommendations, business strategies, industry standards, and accounting. Our business would not be where it is today without the work that Gross Collins has provided. Brock Built Homes gives an excellent recommendation to anyone who is considering working with Gross Collins.

Steve Brock, President

Brock Built Homes

As a new client of HLB Gross Collins, we have found ourselves extremely happy and satisfied with the quality of services offered. Their knowledge, follow-up, timeliness, and organization is superior to those I have seen in the past. They understand the value of building relationships with their clients. All questions and inquiries are answered in a timely manner either via email or phone and they are always willing to accommodate urgent requests. I would highly recommend HLB Gross Collins CPA's to any individual or business for their tax preparation, consulting, and business needs. We look forward to a continued relationship!

Elishiba Hunter

Timothy Baptist Church, Inc.

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