A Cost Allocation Study is an engineering based analysis
of your building’s cost to construct or the purchase
price in order to identify the tangible personal property
(IRC Section 1245) the indirect costs and the land improvements
from the building’s “structural components” or
real property (IRC Section 1250).
The personal property may be subject to accelerated depreciation which results in IMMEDIATE CASH FLOW.
A supportable Cost Allocation Study is a highly technical process and must be completed by specialized engineers. Precisely for this reason CAPITAL REVIEW GROUP provides the Team and the Alliances necessary to meet all IRS, Treasury, and legal requirements. Our Team approaches every Cost Allocation Study under the “Detailed Engineering” method specified by the IRS.
No doubt it was your intent when you purchased commercial property/properties to maximize your investment dollars, receive an income from the property and/or optimize tax benefits.
A Cost Allocation Study is the piece of your financial puzzle (probably missing) which accelerates the return on your capital from your commercial building investment. This process or “strategy” allows you to apply IRS Rulings to increase your cash flow through accelerated depreciation that you can apply NOW and also allows you to “catch up” – back to 1987.