June 6, 2019

Member Spotlight: Bedford Cost Segregation

Bedford Cost Segregation is a national firm comprised of engineers and accountants trained in maximizing tax-savings on income-producing real estate (new and old). To achieve said tax-savings, they specialize in performing engineered-based Cost Segregation, Partial Disposition, and Energy-Efficiency, and R&D Studies. They are not CPAs, but rather they augment the services CPAs provide.

A Cost Segregation Study (CSS) drastically accelerates the depreciation deductions able to be claimed on income-producing real estate. How it works: a CSS forensically breaks-down and re-classifies building components from ‘Real Property’ to either ‘Personal Property’ or ‘Land Improvements’ resulting in re-allocation of (15-45%) of the Building cost-basis. While Personal Property depreciates in 5- or 7-years and Land Improvements depreciate in 15-years, naturally that (15-45%) of depreciable cost-basis is available to be claimed much sooner than Real Property, which depreciates in either 27.5- or 39-years. As you can imagine, a CSS produces significant cash-flow/working capital by generating depreciation deductions to offset taxable income…tangible tax-savings now. General rule of thumb: whether real estate was acquired, built-new, or renovated/improved over the past 15-years, a CSS can still be performed and there’s no amending of past tax-returns required.

Bedford Cost Segregation prides themselves on being trusted real estate advisors who focus on generating cash-flow through tax deductions/ordinary losses. They never work in a silo with just the real estate owner and always make sure the CPA is on-board with the decision to perform the study. The phrase “You get what you pay for” is an absolute truth in the cost segregation industry and individuals are strongly cautioned against selecting a cost segregation firm based-on price. Choosing the wrong cost segregation firm comes with two (2) primary risks, the risk of IRS audit/penalty for a low-quality study and the risk of not capitalizing on maximum results due to inexperience.

For more information, please contact Frank Giudici, Director of Business Development, at 518-898-6603 or