The most important aspect of our approach is that it is also the IRS’ approach. Everything that we do is in accordance with the rules and guidelines published by the IRS. The IRS stipulates that any cost segregation analysis must be engineering-based as well as tax-based, the reasoning behind Winchester Bay’s unique structure. Our service is designed to work hand-in-hand with the advice and direction that your trusted CPA may already be providing you and will only lead to even more cash flow and NPV tax savings.
The cost segregation process begins with our capable construction engineers and estimators completing a detailed inspection of the property and review of available construction documents such as plans, specifications, contractor invoices, loan schedules, purchase contracts, etc. Then, this collected data is organized into cost “take-off” schedules, which are lists of identified building components (such as carpet, appliances, etc.) that can be depreciated over shorter lives (5 years, 7 years, and 15 years versus the typical 39 years). The accelerated federal depreciation schedule that is created from this information can result in substantial increases to cash flow and net present value tax savings.
