This strategy was brought about in a law suit between Hospital Corporation of America (HCA) and the IRS. In this suit, the IRS claimed that HCA owed them $800,000,000 based on the use of an accelerated depreciation methodology. On August 24, 1997, Judge Tom Wells decided in favor of HCA.
Shortly after this landmark decision, protocols and processes were developed to provide “engineered cost segregation studies” for commercial property owners. Understanding the financial impact of cost segregation on commercial property owners, we developed an application that is in full compliance with the IRS and tax court rules and regulations.
At first the fees for these studies were in excess of $100,000 and were only for properties with at least $10,000,000 in building costs. We recognized that there was an enormous market place of commercial property owners who have building costs of $300,000 - $10 million that was being ignored. We felt that these owners should have the opportunity to increase their cash flow through the tax savings created by cost segregation.
We provide efficient, affordable, and compliant engineered cost segregation studies for commercial and residential rental properties throughout the United States.
A Brief History
