Senior housing starts are at a record pace due to increased demand of an aging baby boomer population. Whether a project is categorized as independent senior living, assisted living, memory care, or a combination of each, the accelerated assets found in these facilities must be analyzed by a tax expert in order to maximize depreciation - which in turn minimizes federal tax liability. Look-back cost segregation studies on these facilities can provide the tax payer with catch-up depreciation in the current tax year (depreciation that should have been claimed but was not in the absence of a study).
Areas like site improvements, dining, kitchen, café, laundry, salon, activities, nurse/medicine, theatre, lobby, reception, administrative offices, conference and individual guest rooms all include assets that qualify for accelerated depreciation, and some properties even qualify for Section 179D tax deductions for energy efficiency.
For over thirty years our firm has tracked IRS Regulations, court cases, pronouncements, and IRS directives. This seasoned approach to cost segregation provides AER Group with the tax knowledge and expertise to drive our engineered cost segregation reporting. Enacted within the PATH Act in 2013, Regulation 1.263(a)-3(e)(2)(ii)(B) requires tax payers to segregate building components into standard asset categories, which is include in our analysis.
Our tax consulting follows the IRS Audit Techniques Guide (ATG) which has resulted in an impeccable success rate in the rare occasion one of our cost segregation studies are audited.
Assisted Living facilities have unique asset characteristics that are identified in an AER Group engineered cost segregation analysis. Past studies have resulted in a return on investment (ROI) of 50 to 100 times the cost of a study.
Studies apply to properties acquired/built several years ago as well as current acquisitions/builds. Newly constructed projects may qualify for bonus depreciation depending on the year it is placed in service.