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Cost Segregation

Cost Segregation is a specialized tax strategy provided by Teuscher Walpole CPA that can help businesses maximize their cash flow and minimize tax liabilities. By classifying and reclassifying assets, Cost Segregation allows companies to accelerate depreciation deductions and reduce their overall tax burden.

Our team of experienced professionals at Teuscher Walpole CPA specializes in Cost Segregation studies tailored to meet each client’s unique needs.

Here's how our Cost Segregation services can benefit your business

Increased Cash Flow

Cost Segregation enables businesses to accelerate depreciation deductions by identifying and adequately classifying assets. By reclassifying specific components of a building or property from more extended recovery periods to shorter ones, businesses can reduce their taxable income, resulting in increased cash flow.

Reduced Tax Liabilities

Businesses can significantly reduce their tax liabilities by accelerating depreciation deductions through Cost Segregation. This strategy optimizes the timing of deductions, ensuring that businesses benefit from tax savings in the earlier years of ownership. With reduced tax liabilities, companies can reinvest more in their operations and marketing.

Compliance with IRS Guidelines

At Teuscher Walpole CPS, we ensure that our Cost Segregation studies comply with the guidelines set forth by the Internal Revenue Service (IRS). Our team of experts understands the tax laws and regulations, allowing us to conduct comprehensive studies that adhere to IRS standards. This attention to detail ensures your business remains compliant and avoids potential audits or disputes with tax authorities.

Detailed Engineering Analysis

Our Cost Segregation studies involve a detailed engineering analysis of your property or building. Our experts meticulously examine construction costs, blueprints, and other relevant documentation to identify components that qualify for accelerated depreciation. This comprehensive analysis allows us to maximize the benefits of Cost Segregation and provide you with accurate and defensible results.

Tailored Solutions for Your Business

Every business is unique, and our Cost Segregation services are customized to suit your specific needs. Whether you own commercial real estate, a hotel, a medical facility, or any other property, our team will thoroughly evaluate opportunities for accelerated depreciation. We consider the unique characteristics of your property and industry to ensure optimal tax savings.

Expert Guidance and Support

Teuscher Walpole CPAs provide comprehensive support throughout the Cost Segregation process. We have completed over 6,000 cost segregation with clients in every state and in almost every possible industry.

Cost Segregation Case Study – Ski Resorts

Cost segregation is a tax planning strategy in various industries, including real estate. Ski resorts often have substantial real estate holdings and can also benefit from cost segregation studies. Here’s how the professionals at Teuscher Walpole assisted a very high-profile resort to use cost segregation to their advantage:

  1. Accelerated Depreciation: Ski resorts typically own many assets, including buildings, infrastructure, equipment, and accommodations. Cost segregation allows them to reclassify certain assets into shorter depreciation periods. This can result in significantly accelerated depreciation deductions, which, in turn, can lead to reduced taxable income and lower tax liabilities.
  2. Improved Cash Flow: Ski resorts can increase their cash flow by accelerating depreciation deductions. This extra cash can be reinvested in the resort, used for maintenance and upgrades, or provide financial flexibility to navigate economic uncertainties.
  3. Enhanced ROI: Ski resorts often require substantial initial investments in infrastructure and facilities. Cost segregation can help them recover their investments more quickly, leading to a higher return on investment (ROI). This can be especially beneficial for attracting investors and financing future expansion projects.
  4. Accurate Asset Classification: Ski resorts typically have a mix of assets, including buildings, lifts, snowmaking equipment, and guest accommodations. Cost segregation studies ensure that each asset is accurately classified for tax purposes, reducing the risk of errors or disputes with tax authorities.
  5. Tax Compliance: The ski resort industry is subject to various tax regulations, and compliance is critical. Cost segregation studies help ski resorts maintain compliance with tax laws by providing a detailed breakdown of assets and their respective depreciation schedules.
  6. Renovation and Expansion: Ski resorts often undergo renovations or expansions to stay competitive and meet evolving customer demands. Cost segregation studies can be beneficial during these times, as they can identify which assets qualify for shorter depreciation periods, maximizing tax benefits during and after the construction phase.
  7. Competitive Advantage: Ski resort guests and investors value environmentally friendly and energy-efficient facilities. Cost segregation can identify energy-efficient components within a resort, making it possible to claim energy tax credits and providing a competitive edge in marketing.
  8. Risk Mitigation: Cost segregation studies conducted by experienced professionals ensure that the resort complies with IRS guidelines. This reduces the risk of audits, penalties, and disputes with tax authorities, providing resort owners and operators peace of mind.
  9. Financial Planning: Accurate and up-to-date financial information is essential for sound business decisions. Cost segregation studies provide a clear picture of the resort’s financial health and the impact of depreciation on its bottom line, aiding in long-term financial planning.

In summary, ski resorts can benefit significantly from cost segregation studies by accelerating depreciation deductions, improving cash flow, enhancing ROI, ensuring tax compliance, and gaining a competitive edge in the market. To fully leverage these benefits, ski resorts should consider working with experienced cost segregation specialists who understand the unique assets and tax regulations relevant to their industry. 

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By partnering with Teuscher Walpole CPS for Cost Segregation, your business can unlock significant tax savings, increase cash flow, and allocate resources towards areas that drive growth and innovation. Our expertise, attention to detail, and commitment to client satisfaction set us apart as a trusted provider of Cost Segregation services.

Contact Teuscher Walpole CPS today to learn more about how our Cost Segregation services can benefit your business and help you optimize your tax strategy.