For Account Professionals
BRC Advisors, Net Lease Group, essentially views its role as playing an ancillary role to the accounting community of professional who provide services to your own client bases whether a IRC Section 1031 Exchange process, reviewing their tax profile to determine disposition strategies or whether to acquire additional basis with a highly leveraged credit tenant net leased property for a better tax profile or even some estate planning. Accounting professionals also play a central role in the cost segregation process, referenced above. Acquisition candidates must be reviewed in the context of all of the implications of ownership from a tax-motivated perspective as one of the many data points when considering an acquisition on behalf of a client. They are the most likely people to recommend use of the technique to their clients or employers. An accountant also will review and implement the findings in the required engineering report.
The benefits of cost segregation overwhelmingly outweigh the drawbacks. When it comes to real estate acquisitions, the jewel of cost segregation is that it yields enhanced depreciation deductions. As evidenced by the above example, there can be astounding differences in outcomes between using and not using it. The major advantage of cost segregation is not necessarily that it will produce more depreciation deductions (except, of course, to the extent depreciable basis has been allocated away from the land element of the purchase). Instead, due to the time value of money, the advantage of these front-loaded deductions will be quantifiably greater than had the deductions been spread over longer periods of time using slower depreciation methods.