Cost segregation is the method of re-classifying components and improvements of your commercial building from real property to personal property. This process allows the assets to be depreciated on a 5, 7 or 15 year schedule instead of the traditional 27.5 or 39 year depreciation schedule of real property. Thus your current taxable income will be greatly reduced and your cash flow could increase by 5% – 8% of your building’s cost. This service is ideal for assets acquired in the past three years.
Our Role as Energy Manager
ECX collects asset information including closing statement and log of improvements completed since purchase. We will then present savings results to Client. If Client wants to move forward, an Engagement Letter is executed and a site visit is performed by our Service Provider. A full report is provided once the audit is completed.
A dedicated Account Manager will:
- Identify which assets are appropriate for CSS’s
- Collect required asset information including closing statement and log of improvements completed since purchase
- Present a Level 1 Financial Analysis, inclusive of cost, schedule, and ROI, if agreeable:
- Present Engagement Letter to Client. Once executed
- Schedule audit of asset with Service Provider
- Provide completed CSS Report to Client. Client will then share CSS Report with their accountant to incorporate into tax filings