Cost Segregation Services in Dallas, Texas
Looking for a cost segregation provider in Dallas? KBKG's local experts can help.
Cost Segregation is a strategic tax savings tool that allows companies and individuals based in Dallas, who have constructed, purchased, expanded, or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes. In general, it is easy to identify furniture, fixtures, and equipment (FF&E) that are depreciated over 5 or 7 years for tax purposes. However, a Cost Segregation Study goes far beyond that by dissecting construction costs that are usually depreciated over 27 ½ or 39 years. The primary goal of a Cost Segregation Study is to identify all construction-related costs in Dallas that can be depreciated over 5, 7 and 15 years.
For example, 20% to 50% of the total electrical costs in most buildings can qualify as personal property (depreciated over 5 or 7 years). Reducing tax lives results in accelerated depreciation deductions, a reduced tax liability, and increased cash flow.
Walker Properties constructed a brand new office building in Dallas.
The new building has 60,000 square feet and a lot size of 220,000 square feet.
Results: Year one deductions of over $400,000.
Year one increased cash flow of $170,000.
WHAT IS INVOLVED IN A COST SEGREGATION STUDY IN DALLAS?
A quality Cost Segregation Study evaluates all information including available records, inspections, and interviews, and presents the findings in a clear, well-documented format.
Our process for conducting a detailed Cost Segregation in Dallas includes: A review of all cost detail for the property including but not limited to: the general contractor's application for payment, construction invoices, change orders, depreciation schedules, and appraisals.
COST SEGREGATION FAQs
What should I consider when selecting a cost segregation provider?
You should always read the bio and resume of the persons signing your cost segregation study. Make sure they are certified with the American Society of Cost Segregation Professionals (ASCSP). The designation for certified cost segregation professional is CCSP and comes after the engineer's name. Any designation less than that is substandard. Just like you would only use a CPA to file your tax return, you should only use a CCSP to conduct your cost segregation study.
Is KBKG available if I get audited by the IRS?
Any company in Dallas can give you a cost segregation report with results that save you a lot of money; the real question is whether it will stand up to IRS scrutiny. The true value of the fee you pay is how easy (or painful) the audit process goes. Every cost segregation company will say they stand behind their work, but how can you really know what will happen when the IRS audits the report? Using a larger company that has been in business many years should give you comfort that they can successfully defend their work against an IRS audit. Look at their client profile, bigger well-known clients have a higher probability of being audited by the IRS. A company without high profile clients probably doesn't have a great deal of experience dealing with the IRS.
Does the company have tax experts that can help if my CPA has questions?
There are so many unique fact patterns and situations that can have a tax impact on how the cost segregation deductions will flow through on your tax return. A cost segregation engineer does not know enough about tax to truly understand how the cost segregation deductions will specifically impact you. Using a firm with tax experts on staff will save you money if your CPA has any questions regarding your specific situation. Using a cost segregation firm without tax experts in Dallas means your CPA may have to spend several hours researching the answer and then charge you for that. KBKG has a staff of more than 10 tax experts with over 100 combined years of experience filing tax returns and won't charge you extra to provide answers we have already researched.
How long does it take to complete a cost segregation study?
A cost segregation study in Dallas will typically take 30-60 days to complete depending on how quickly we receive the information we need.
How much will a cost segregation study cost?
The fee for a cost segregation study in Dallas will range depending on the building size, building type, number of tenants, and other physical characteristics. Typically fees can range from $5,000 to $15,000.
What are the Benefits of Cost Segregation?
Many business owners are surprised to learn of the compelling tax savings a cost segregation study offers. Below is a list of three of the most prominent benefits.
Cost Segregation Tax Insights
KBKG Promotes Amar Patel to Principal of Cost Segregation
PASADENA, Calif. – KBKG, a tax credits and incentives consulting firm, has announced the promotion of Amar Patel to Principal of Cost Segregation. Patel is based out of the firm’s Southeast office and most recently spent the past two years as the Director of Cost Segregation. “Amar and I have known each other our entire … Read More
This Month’s Webinars
Looking for CPE credit? We have several sessions available this month. Click the links below to register. If you have questions or need help registering, please email [email protected] Research & Development Tax Credits 11/1/2022 | 12:00 PM PT | 1 hour | 1 CPE credit This webinar will cover the fundamentals of the Research and … Read More
KBKG to Exhibit AFWA Women Who Count Conference
Attending the AFWA Women Who Count Conference is Principal, Lester Cook, Manager, Sasha Brenecki, and Regional Director Todd French who will represent KBKG at the event, which takes place October 25th-28th in Chicago, Illinois at The Drake. About the Event This is the first time in two years that the AFWA will host its annual … Read More
KBKG to Exhibit and Sponsor Tal Glenn Memorial Golf Tournament
Attending the 2022 Tal Glenn Memorial Golf Tournament is our Principal, Eddie Price, and our Regional Director, Matthew Geltz, who will represent KBKG at the event, which takes place on October 24th in Tyler, Texas at The Cascades Golf & Country Club. About the Event The Tal Glenn Memorial Golf Tournament is an annual golf … Read More
KBKG Tax Insight: IRS Updates Audit Technique Guide for Cost Segregation
IRS Updates Audit Technique Guide for Cost Segregation On June 1st of, 2022, the IRS published the latest edition of the Cost Segregation Audit Technique Guide (ATG). The Cost Segregation ATG assists IRS examiners during audits by providing an understanding of technical information, examination techniques, and what to look for when reviewing cost segregation reports. … Read More
KBKG to Speak and Exhibit at FICPA MEGA CPE Conference
Research & Development Tax Credit Principal, Jonathan Tucker and Director, Ian Williams will be speaking on Research and Development Tax Credits Overview and Recent Updates. Their presentation is taking place on Thursday, June 9th from 10:30 AM – 11:20 AM. Regional Director, Chad Niehaus is speaking in a 25-minute Ted-Talk, a new way of presenting … Read More
KBKG to Exhibit and Sponsor the NJCPA Convention & Expo
This year, Sumit Sharma, Paul McVoy, Alexis McClellan, and Justin Brumfield will be representing KBKG at the NJCPA Convention & Expo. This conference takes place from June 14th to June 17th at NJCPA Convention & Expo in Atlantic City. About the NJCPA Convention & Expo The NJCPA Convention & Expo knows that there are mega-changes … Read More
KBKG Tax Insight: IRS and Treasury Release Rev. Proc. 2022-14 Earlier This Year
The IRS and Treasury released Rev. Proc. 2022-14 earlier this year, updating and superseding the current list of automatic method changes. Background Taxpayers generally cannot change from an established accounting method to a different method unless they first obtain IRS consent to change from the established accounting method. Taxpayers must obtain IRS consent to change … Read More
KBKG Tax Insight: Pull Tax-Free Cash Out of 1031 Exchanges with Cost Segregation
As featured in Accounting Today Real estate owners have limited options to pull cash out of a 1031 exchange without having to pay income tax. With proper tax planning, this problem can be solved with a cost segregation study. The application of cost segregation for this purpose may vary depending on the tax rules in … Read More
KBKG to Speak at TXCPA Dallas Convergence 2022
Alex Martin, Transfer Pricing Principal, will be speaking at TXCPA Dallas Convergence on Monday, May 16th. He’ll be joined by Bill Taylor, William Long, Matthew Geltz, Mike Cornell, and Emily Kennedy from our Dallas Fort-Worth office. This event is taking place at the Omni Frisco Hotel in Frisco, Texas. About the TXCPA Dallas Convergence TXCPA … Read More