Cost Segregation Studies in New Mexico

Nelson & Company CPA provides engineering-based cost segregation studies for New Mexico property owners seeking to accelerate depreciation, reduce tax liability, and improve after-tax cash flow. Our team combines in-house engineering experience with knowledgeable tax professionals familiar with depreciation rules, IRS guidance, and documentation expectations. 

We serve property owners throughout Albuquerque, Santa Fe, Taos, Las Cruces, Rio Rancho, Roswell, Farmington, Clovis, Hobbs, Carlsbad, and communities across New Mexico and the Western U.S. Our process includes an on-site property visit to better understand the building, improvements, systems, and site features that may affect the study.

A cost seg study may help owners of commercial and income-producing real estate identify portions of a building and related improvements that qualify for shorter recovery periods, often 5, 7, or 15 years, rather than being depreciated over 27.5 or 39 years.

This can be especially valuable when a property has been recently purchased, constructed, remodeled, expanded, or improved. For many owners, accelerated depreciation can increase deductions in the early years of ownership and improve cash flow for additional acquisitions, improvements, debt reduction, or operations.

Nelson & Company has completed engineering-based cost segregation studies for a range of New Mexico property owners, including specialized medical facilities, retail centers, unique hospitality spaces, and short-term rentals.

• Regional Cancer Center: Our team performed a comprehensive study on a specialized medical facility, meticulously analyzing heavy-duty electrical distribution systems, vault, radiation protection, and specialized medical equipment required for patient care areas to maximize 5-year property classifications.
• Retail Strip Mall: In a recent commercial retail engagement, we evaluated a multi-tenant strip mall. The study successfully separated structural elements from tenant-specific improvements, storefront facades, dedicated utility hookups, and extensive parking lot lighting and paving.
• Short-Term Rental Property: Our team reviewed building components, high-end interior finishes, furnishings, and localized site improvements for a high-turnover vacation rental, identifying significant opportunities for immediate or accelerated write-offs.
• Museum & Cultural Center: For this unique property featuring extensive outdoor exhibit spaces, our engineering-based analysis focused on connecting the exterior improvements to the museum’s mission in order to apply cost segregation to the features. We successfully classified specialized security systems, decorative outdoor walkways, theme-based landscaping, and exterior lighting structures into 15-year land improvements.

Eligible properties may include medical facilities and specialized clinics, retail shopping centers and strip malls, short-term and vacation rental properties, museums and recreational venues, multifamily communities, office buildings, manufacturing and industrial hubs, hotels, restaurants, and other income-producing real estate.

Nelson & Company combines responsive regional service with the technical depth of an engineering-based cost segregation practice. Our in-house engineering experience, tax knowledge, multi-state project experience, and experience applying IRS guidance help property owners pursue accelerated depreciation with confidence.

• In-house engineering experience integrated with knowledgeable tax professionals
• Projects ranging from individual investment properties to major regional developments
• Deep experience throughout New Mexico, Texas, Colorado, Arizona, Utah, and the Western U.S.
• Detailed engineering-based reports, with professionals available to support the study if questions arise from your tax advisor, the IRS, or a state tax authority
• Complimentary preliminary benefit analysis before you commit to a study