BDO United States

News and Resources

• July 2010 NewsBytes
• Study Examines Link between Executive Pay and Company Performance at 10 Top American Cities
• Pending Financial Overhaul Exempts Small Public Companies from Internal Control Audits
• June 2010 NewsBytes
• The BDO 300: 2009-2010 Board Compensation Survey
• Recent Developments in Accounting for Equity-Based Compensation
• Dealing with Economic Turbulence: 6 Steps to Stay on Track
• The BDO 250: Board Compensation Survey
• The BDO 250: Executive Summary: BDO USA Retail Compass Survey
• State and Local Tax Alerts
• Credits and Incentives Alerts
• Washington Tax Reports
• International Tax Newsletter
• Expatriate Tax Alerts
• Tax Letter for Individuals
• Tax Letter for Businesses
• Retirement Plan Cost of Living Adjustments for 2009

Cost Segregation

BDO’s engineering-based cost segregation team can help owners of commercial or industrial real estate identify opportunities for federal, and in some cases, state tax advantages.

Taxpayers are typically correct in depreciating personal property such as equipment and furniture over five or seven years, but they often neglect available federal and state tax benefits by erroneously depreciating their entire investment in constructing or acquiring a building over 39 years. Our cost segregation team can work to help owners/taxpayers in:

• Reducing federal income taxes in the early years of a building’s life by accelerating federal tax depreciation deductions, resulting in increased current cash flow.
• Identifying the net present value of the increased cash flow over the life of the facility.
• Providing an independent third-party analysis of project costs. Our conclusions are based on sound engineering principles and are supported by IRS regulations, rulings and case law.

In addition to new construction projects and building acquisitions, BDO’s cost segregation services can also provide benefits to taxpayers who have either constructed or acquired buildings in prior years. For example:

• The classifications of property placed in service in prior years may be corrected with the filing of a Form 3115, Application for Change in Accounting Method, which does not require amending prior year tax returns.
• The depreciation adjustment for all prior years, which may be significant, can be fully recognized in the first year, which can significantly increase cash flow.

Our Team

BDO has provided cost segregation services to its clients on a national basis since 1981. Our cost segregation team is comprised of professional engineers, contractors, architects and real estate tax professionals who have over 100 years combined experience in cost segregation and over 200 years combined experience in building design and construction from both technical and financial standpoints. Our engineers and contractors have a broad spectrum of experience in civil, structural, electrical, HVAC, mechanical, industrial, environmental and plant engineering and interior design.

Our experience includes studies of a multitude of different types of commercial property, including manufacturing facilities, hospitals, nursing homes, assisted living facilities, hotels, retail and grocery stores, cold storage facilities, automobile dealerships, residential apartment complexes and office buildings.