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FLORENCE, SC , WebsterRogers LLP now provides a new service, cost-segregation studies, to business and industry. Since it's a relatively new service, there have been many questions about what it is, what the benefits are, etc. What? Cost segregation is the proper identification and classification of construction costs. A cost-segregation study is a strategic tax tool that examines construction costs in detail to uncover assets qualifying for accelerated depreciation, often resulting in immediate tax savings and increased cash flow. Why? Although property owners generally depreciate the cost of their real property (39 years for commercial construction and 27 years for residential real estate construction), studies show that as much as 55% of these costs is actually composed of tangible personal property and external improvements - assets that can be depreciated over a much shorter span of time. By properly classifying assets that qualify for the accelerated depreciation attributed to five-, seven-, or 15-year property, property owners can maximize depreciation deductions, thereby reducing tax liability and generating cash flow. Who? Anyone who has constructed, purchased, or substantially expanded, remodeled, or renovated any kind of real estate since 1987 should consider a cost-segregation study. When? Although the ideal time to conduct a cost-segregation study is when plans are drafted for construction, expansion, or renovation, current IRS standards allow this procedure to be applied to assets acquired as far back as 1987 - without amending prior tax returns. To obtain more information about cost-segregation studies and many more topics, contact the nearest WebsterRogers LLP office, and visit www.websterrogers.com. WebsterRogers LLP is a regional accounting and consulting firm, with offices in Florence, Myrtle Beach, Georgetown, Charleston, and Sumter.