Cost Segregation for New Construction
Ground up, expansions, renovations, interior build outs and leasehold improvements.
Big Four background, WBENC-certified
Engineering-based cost segregation for the buildings you build, buy and improve.
Cost segregation and tax fixed asset services for new construction and purchased properties, from a practitioner with almost twenty years in the work.
Cost Segregation Boutique is a WBENC-certified woman-owned firm founded in 2020 by Michelle Seagraves. We classify the real property and personal property inside constructed and acquired buildings, so the costs eligible for a shorter tax recovery period are identified and supported.
Services
Four services, one specialism.
All of it is cost segregation and the fixed asset work around it. There is no second practice area competing for the time.
Cost Segregation for Purchased Facilities
Single facility purchases and portfolios of purchased facilities.
Construction Tax Planning
Tax advantageous cost template creation, and coordination with construction teams, contractors and accounting professionals.
Qualified Improvement Property Identification
Identification of Qualified Improvement Property inside the capital spend.
What is cost segregation
A building is not one asset. It is many, with different tax lives.
Buy or build a facility and the whole cost tends to land in one long-lived bucket. Cost segregation goes back through the drawings and the cost record and separates out what belongs on a shorter recovery period.
Cost segregation is the classification of real property and personal property for acquired or constructed buildings, expansions, renovations and leasehold improvements, in order to receive tax benefit.
Benefit comes from using an engineering approach to carve out the costs eligible for a shorter tax recovery period. That approach relies on professional estimating techniques, and works from:
- Construction drawings
- Available cost information
- Statistical sampling where the size of the population calls for it
- New construction
- Leased facilities
- Qualified Improvement Property
- Purchased facilities
- Previous year facility construction and purchases
It applies to current year capital investments, and to previous year investments through an automatic accounting method change. A building put in service several years ago is not out of scope.
Industries we serve
Taxpayers in virtually any industry.
If the capital went into a building, the question is worth asking. These are the sectors the analysis has covered most.
Ask about yoursManufacturing
New construction, expansions and renovations
Real Estate
Single facility purchases and portfolios
Retail
Interior build outs and leasehold improvements
Healthcare
New construction and renovations
Hospitality
Purchased facilities and renovations
Industrial
Ground up construction and expansions
Almost twenty years of engineering-based cost segregation, behind a Big Four National Tax background.
20+Years in cost segregation
Big FourErnst & Young National Tax background
WBENCCertified woman-owned business
ASCSPMember, American Society of Cost Segregation Professionals
About
Michelle Seagraves.
Owner and Principal. An architect before she was a tax practitioner, which is the reason the drawings get read properly.
Almost twenty years giving clients tax savings from engineering-based cost segregation of capital assets. Analysis delivered for new construction, renovations, expansions and purchased facilities across manufacturing, industrial, retail, restaurants, health care and real estate, including a large number of studies involving statistical sampling.
A leader in early involvement cost segregation analysis, working with construction teams through the project lifespan to maximise the benefit carved out. Previously Central and Southwest Area Leader in the Cost Segregation group at Ernst & Young LLP, in National Tax. Career started at Arthur Andersen, with time at Crowe.
BS Architectural Studies, University of Illinois
Master of Architecture
MBA
ASCSP member
Connect on LinkedIn
FAQ
The questions that come up first.
If yours is not here, ask it directly. The answer comes from the person who would do the work.
Ask MichelleAn engineering-based analysis that classifies the real property and personal property in a building you constructed or acquired, so the costs eligible for a shorter tax recovery period are identified and supported.
New construction, leased facilities, Qualified Improvement Property, purchased facilities, and facility construction or purchases from previous years.
Not automatically. Cost segregation applies to current year capital investments, and to previous year investments through an automatic accounting method change.
The engineering approach works from the project record, so the useful starting set is:
- Construction drawings
- Available cost information for the project
- Detail on any expansions, renovations or build outs inside the spend
Early involvement means a tax advantageous cost template can be set up before the costs are recorded, and the construction team, contractors and accounting professionals are coordinated while the information is still live. It is the difference between capturing detail and reconstructing it.
Start here
Tell us about the building.
Tell us about the building.
Get a straight answer.
Tell us what was built, bought or improved, and when it went into service. If a study makes sense you will be told, and if it does not you will be told that too.