COST SEGREGATION STUDIES FREQUENTLY ASKED QUESTIONS

Questions and answers here are geared to property owners. If your accountant has more technical questions about Cost Segregation Studies, contact us and we’ll provide a site that addresses additional questions in accounting terms.

What is a Cost Segregation Study?
This IRS-approved analysis of construction costs accelerates the depreciation on certain expenditures from 39 years to 5 to 15 years, saving taxes in current years.

What kinds of properties qualify?
Any commercial property qualifies, but Orbit Builders has generated significant tax savings for owners of Restaurants, Car Dealerships, Manufacturing Plants, Apartment Complexes, Retail Operations and Shopping Centers.

What if I already expense my equipment or depreciate it over 5 years?
Cost segregation qualifies more than just equipment for rapid depreciation, from water and sewer lines, certain electrical and plumbing components and asphalt, to water features, wall coverings, millwork and more.

Why hasn’t my accountant already done a Cost Segregation Study?
It takes two to conduct an IRS-approved study. The IRS specifically requires building professionals to contribute to cost seg studies, so even the best accountants hire, or refer clients to, Orbit Builders instead of doing them in-house.

Do you charge by the hour, or is the fee based on a percentage of my savings?
Our tax-deductible fixed fee is based on the size and complexity of your study and will be confirmed prior to commencement of work.

How long before I see the benefits of a cost segregation study?
You will benefit immediately! Savings in your first tax filing following the completion of the cost seg study will generally far exceed the cost of the study. Call us now to save on your next tax bill!

Call Orbit Builders today for a free evaluation of your potential savings!