How much can I save with a cost segregation study?
1. Results vary with the type of building, the cost, and when it was placed in service, but here are four examples:

Headquarters Facility - $1.6 M Cost 25,000 sf office, 25,000 sf warehouse Tax savings year 1: $120,000. NPV* of tax savings: $180,000.

Distribution Warehouse - $2.6 M Cost Tax savings year 1: $60,000. NPV* of tax savings: $105,000.

Office Building - $7.0 M Cost Tax savings year 1: $160,000. NPV* of tax savings: $241,000.

Luxury Apartments - $35 M Cost Tax savings year 1: $600,000. NPV* of tax savings: $1 Million

* Net Present Value calculated using 8% Discount Rate. Tax savings based on 35% tax rate. (back)

Do I qualify?
2. If you own depreciable real property of at least $500,000 in cost, and you are not tax exempt, you qualify. (back)

What if I get audited?
3. The principals of Babcock-Ernst Engineering have submitted hundreds of cost segregation studies in the past four years, without any audits. However, if the IRS does audit the study, a principal of Babcock-Ernst Engineering will attend the audit without any charge. In the past 10+ years, Mr. Ernst has completed over 1000 studies with only 6 audits. All of the 6 audited studies were accepted by the IRS with only one needing a minor change. (back)

What is a cost segregation study?
4. A cost segregation study is an engineering analysis, performed in a manner acceptable to the IRS, that reclassifies components of a building from 27.5, 31.5 or 39 year depreciation to 5, 7 or 15 year depreciation. The benefit of a study comes from accelerating the depreciation tax deductions. The deductions are worth much more today than 39 years from now. (back)

My contractor says 60% of the electrical contract was for my manufacturing equipment. Why do I need a study?
5. Estimating costs whether by your contractor or by your accountant is not acceptable unless it is part of an engineering study. You could be closing the door on significant tax benefits, while opening the door for an audit. (IRS Legal Memorandum 19991045). (back)

My client is setting up his asset records and needs the data in a format that he can import to his existing software for retirement purposes. Can you provide that?
6. Our data can be exported as a Microsoft Excel (.xls) file and can be easily customized. Any of our staff can work with you to meet your particular needs. (back)

How do I get a free Estimate to determine how much I can save?
7. You can send us an e-mail, fill out our short questionnaire form, or call 305-599-2780. One of our cost segregation specialists will contact you promptly. (back)

Why should I pick Babcock-Ernst Engineering to do my study?
8. We are focused on a single objective. Providing you with the most accurate, detailed and thoroughly documented cost segregation study in the industry. (back)

When our customers realize what Cost Segregation is, the next two questions are, WHAT'S IT GOING TO COST ME, AND HOW SOON CAN YOU GET IT DONE!