Cost Segregation in Sherwood

Many of our clients qualify for cost segregation services without even knowing it. Cost segregation involves analyzing commercial property and classifying certain components based on their applicable depreciation schedules. As your property gets older, you’ll need more money to invest in your property for repairs and renovations. A detailed cost segregation study can help property owners identify potential opportunities for accelerated depreciation.

If you have built, expanded, renovated, or purchased commercial property, our cost segregation services may help you better understand the depreciation of your property and its components.

Contact Hendrickson & Associates LLC now at (503) 701-6498 for more information.

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Hendrickson & Associates LLC’s Cost Segregation Services

Your commercial property will most likely last longer than the things inside it will. Eventually, things start to break down and will need repair or replacement services. Certain components of a commercial property may qualify for different depreciation treatment based on their classification and useful life. A cost segregation study identifies and documents these components to provide a more detailed picture of the property’s depreciation.

Depreciable Property

Here are a few types of commercial property that depreciate over time:

  • Hotels and motels
  • Commercial rental properties
  • Banks
  • Stores
  • Restaurants
  • Nursing homes
  • Hospitals

Common Causes of Commercial Building and Property Depreciation:

  • Flooring
  • Cabinetry
  • Doors
  • Asphalt
  • Electric wiring
  • HVAC systems
  • Plumbing
  • Technology

When to Start the Cost Segregation Process

Typically, we advise our clients to start thinking about cost segregation as soon as they purchase a commercial property. A cost segregation study can be considered when a qualifying property is purchased, constructed, expanded, or renovated. A study may also benefit properties acquired in earlier years by identifying opportunities related to depreciation from prior years.

Four Steps to Cost Segregation

We have many years of experience dealing with big and small commercial properties in various states. Although we work side by side with you to make sure your unique situation is dealt with properly, we’ve come up with a general four-step process to begin cost segregation.

  1. Inspection: Having a building engineer or inspector evaluate the property can help assess its components and support accurate classification and depreciation analysis.
  2. Valuation: Once the property has been professionally inspected, we carefully analyze and estimate the value of everything. Our meticulous attention to detail will make sure that nothing is forgotten.
  3. Classification: As we assign values to the different components of your property, we also organize them into appropriate classifications based on their applicable depreciation schedules.
  4. Cost Segregation Result Schedule: We then provide a detailed report outlining the study’s findings and applicable depreciation schedules.

Contact Us Now for the Best Cost Segregation in Sherwood

Call us today for more information on our cost segregation services or to set up a free consultation with one of our bookkeepers.