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
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
Altogether, there are important tax benefits to cost segregation:
||It can maximize tax savings by adjusting the
timing of deductions.
||It can create an audit trail to help resolve IRS
||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.
||It can provide significant opportunities to
reduce real estate tax liabilities and identify certain sales
and use tax savings opportunities.
||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.