top of page
.png)
Recapture Reduction
What is it?
Recapture Reduction focuses on reassessing the Fair Market Value (FMV) of Section 1245 assets such as fixtures, equipment, and other short-lived building components.
By applying IRS compliant, engineering based valuations we can reallocate the gain from these depreciated assets to Section 1250 property.
In short, we can reduce your Depreciation Recapture!
Who can qualify?
The Recapture Reduction service is ideal for building owners, developers, and investors who sell properties after performing Cost Segregation to reduce ordinary income taxes on gains.
How it works
Initiate at Sale
Post-sale, initiate FMV study for Section 1245 assets during tax reporting.
Appraisal Data
Conduct engineering-based appraisals to justify lower values via obsolescence factors.
Reverse Cost Segregation
Use existing cost segregation data to value assets for recapture reduction.
Final Report
Deliver IRS-compliant documentation, ensuring transparency to mitigate audit risks.
bottom of page