As Cost Segregation has become one of the most vital aspects of healthcare financing with tax consequences that can significantly add to a facility’s bottom line, VFR devotes its considerable expertise to providing the finest in cost segregation studies.

The experts at VFR regularly undertake cost segregation studies that identify and reclassify personal property assets so that depreciation time is significantly shortened for tax purposes, thus reducing one’s tax obligations. Cost segregation identifies building costs that would normally be depreciated over a 27.5 or 39-year period and reclassifies those costs, thus creating an accelerated method of depreciation. Such costs might be attributed to wall coverings, carpets, and lighting fixtures as well as such exteriors as sidewalks and landscaping. Depreciation studies, as compiled by our experts, result in accelerated depreciations of five, seven, or fifteen years instead of the conventional period of 27.5 or 39 years.

VFR experts can determine if a client’s property or a part thereof is eligible for cost segregation; if, for example, one’s building(s) had been purchased, constructed, and/or renovated since 1987, it will be eligible for cost segregation. While VFR’s cost segregation studies are also appropriate for new buildings, our studies can also uncover tax deductions for older buildings and those deductions can be retroactive.

VFR comprises highly experienced and knowledgeable engineers who will analyze architectural drawings, mechanical and electrical plans, and other blueprints to segregate the structural and general building electrical and mechanical components from those linked to personal property. They will create an in-depth study that will also allocate “soft costs,” such as architect and engineering fees, to all components of the building. VFR’s accountants and engineers are well versed, seasoned professionals who understand all aspects of construction finance and so can deliver the full benefits of cost segregation.

Altogether, there are important tax benefits to cost segregation:

1. It can maximize tax savings by adjusting the timing of deductions. 
2. It can create an audit trail to help resolve IRS inquiries.
3. It can take advantage of retroactive benefits. Nursing home operators can capture immediate retroactive savings on property added since 1987. The rules have been amended so that you can now take the full amount of an adjustment in the year the cost segregation is completed.
4. It can provide significant opportunities to reduce real estate tax liabilities and identify certain sales and use tax savings opportunities.
5. It can, under certain circumstances, permit nursing home operators to qualify for a special 30% bonus depreciation allowed by the Job Creation and Worker Assistance Act of 2002 or a 50% bonus depreciation allowed under the Jobs and Growth Tax Relief Reconciliation Act of 2003.

When it comes to cost segregation, VFR Healthcare provides unparalleled services and tax benefits that are significantly higher than those provided by other cost-segregation services.

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VFR Healthcare Finance
128 Parkville Ave.
Brooklyn, NY 11230

Phone: 718.837.0111
Fax: 718.837.0112
Email: info@vfrfinancial.com

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