What we do. Harbor Tax Group provides comprehensive, top-quality Cost Segregation Studies.
Adhering to the American Society of Cost Segregation Professionals’ Minimum Quality Standards (https://www.ascsp.org), our team has an impeccable track record and keeps up with the most current tax regulations in all aspects of real and personal property expenditures.
Cost Segregation Studies are our Specialty
A cost segregation study is an engineering-based analysis of building components and costs. It identifies and values all components of a property and allocates the actual total cost of the property based on those values. Typical building components that are allocated to 5-year or 7-year personal property include carpet; decorative trim; specialty lighting, electrical and plumbing components; certain cabinetry; appliances; and furnishings. Typical 15-year land improvements identified in a cost segregation study include paving, sidewalks, curbing, storm water drainage systems, flagpoles, and mailbox structures.
Cost segregation is not limited to new acquisitions of property. If a building was placed in service any time after 1986, and a better allocation could have been made, the IRS allows the owner to file a Change in Accounting Method to recover any missed depreciation from all prior years. This catch-up adjustment can be made on the current year’s tax return, and no amendments are required. The adjustment is often hundreds of thousands of dollars, and sometimes more. A cost segregation study can create ordinary tax deductions and can be performed up until the year of a property’s sale.
By accelerating depreciation deductions, you reduce your taxable income in the early years of property ownership, when cash flow is crucial. The value of saving tax now rather than later can be measured by the net present value at a rate of return you get from the use of your cash now. You may be able to reduce your debt and interest expenses, or you may be able to invest the additional cash flows into new income-earning ventures. Years with eligibility for bonus depreciation significantly increase the benefits of cost segregation.
Our Comprehensive Cost Segregation Studies Include:
Cathy A. Harris, CCSP | Founder.
Harbor Tax Group was founded by Cathy Harris in 2014. Cathy’s experience prior to 2014 includes tax and real estate concentrations with Big Four accounting firms and over thirteen years’ previous experience developing and directing a national cost segregation practice. Cathy earned her “Certified” designation with the American Society of Cost Segregation Professionals (ASCSP) in 2010 and the title of ASCSP Fellow in 2022. She is a co-author of CCH’s Practical Guide to Cost Segregation and was a national consultant on the 2014 tangible property regulations. When Cathy brought her specialized skills to Harbor Tax Group, she developed a practice focused on real property owners’ needs, including assistance with asset depreciation, regulation education, and client-requested more-detailed cost segregation studies at competitive prices.
Timothy K. Kittrell | Owner.
Tim began his career as a cost segregation project engineer in 2007 and became a shareholder in Harbor Tax Group in 2015. Since then, he has completed hundreds of cost segregation studies on properties ranging from small convenience stores to high-rise office buildings in major U.S. cities. Tim’s work is the meat and bones of Harbor Tax Group. His prior experience includes construction with a focus in electrical contracting.
At Harbor Tax Group our mission is to provide the highest quality professional services to valued clients at competitive rates. Our tax experts and engineers are at the top of their fields with extensive experience in cost segregation and tangible asset accounting.