Cost segregation studies in Arizona and greater Phoenix

Nelson & Company CPA provides engineering-based cost segregation studies for Arizona 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 Phoenix, Scottsdale, Tempe, Mesa, Chandler, Gilbert, Glendale, Peoria, Tucson, and communities across Arizona 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 Arizona property owners, including short-term rental properties, restaurants, auto dealerships, and industrial buildings.

Recent Phoenix-area work has included a short-term rental property where our team reviewed building components, interior finishes, furnishings, site improvements, and supporting documentation to identify opportunities for accelerated depreciation.

Our restaurant cost segregation experience includes Arizona projects such as a Scottsdale restaurant where our analysis reviewed building systems, interior finishes, kitchen equipment, electrical components, exterior improvements, and related site costs. 

One recent industrial property engagement included significant interior improvements, including process piping and electrical feeds for manufacturing equipment. These types of assets can be especially important in a cost segregation study because mechanical and electrical systems are considered a component of the equipment that they support. Nelson & Company’s in-house engineering experience helps identify and document these components in a way that supports the classifications used in the study. 

Eligible properties may include multifamily communities, short-term rental and vacation rental properties, office buildings, medical facilities, manufacturing and industrial properties, hotels and other hospitality properties, restaurants, auto dealerships, retail centers, self-storage facilities, mixed-use developments, leasehold improvements, renovations, and other commercial or 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 developments exceeding $150 million
• Experience throughout Arizona, New Mexico, California, Colorado, Texas, 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