Cost Segregation

Opportunity - Engineering Increased Cash Flow

Fuoco Group's engineering-based Cost Segregation Services team can help owners of business real estate assets increase cash flow by accelerating federal tax depreciation of construction-related costs. Opportunities exist not only for newly constructed buildings but also for buildings constructed or acquired in prior years and for acquisitions of existing buildings as well. Depending on the type of building and cost, current cash-flow and time-value benefits may be significant. In addition, benefits for green or alternative energy investments may be available.

Cost Segregation Opportunities

We perform detailed engineering cost analyses to help clients secure these cash-flow benefits, helping:

  • Identify construction assets related to newly constructed projects that qualify for accelerated depreciation deductions, including bonus depreciation where applicable

  • Identify construction assets related to existing facilities acquired in the current year that qualify for accelerated depreciation

  • Perform retroactive cost segregation analyses of facilities that were either constructed or acquired in prior years. As part of the analysis, Fuoco Group will prepare Form 3115 to implement the accounting method change. In most instances, the method change is permitted on an automatic basis, and the “catch-up” depreciation adjustment, which may include bonus depreciation, can be fully recognized in the current tax year without amending any tax returns.

  • Identify green energy tax incentives for taxpayers that utilize energy-efficient building technologies to construct new buildings or renovate existing buildings. These incentives may include the Sec. 48 Business Energy Investment Tax Credit and the Sec. 179D Energy-Efficient Commercial Buildings Deduction.


  • Determine allowable Rehabilitation Tax Credits under IRC Sec. 47 for qualifying rehabilitation projects


Additional Opportunities

Our Cost Segregation services often lead us to identify other opportunities to increase cash flow, including:

  • Immediate or accelerated deductions for other fixed assets
  • Property tax reductions and/or state sales and use tax exemptions for certain real estate assets
  • Other tax accounting method changes that provide immediate deductions
  • Research and development tax credits for attempts to develop or improve products, manufacturing processes or software

Simply stated, Fuoco Group's in-house engineering and real estate tax experience enables us to provide a full-service approach to cost segregation and to take into account constantly changing tax laws and IRS regulations and case law to identify and deliver results.

Fuoco Group was featured as a guest on Fred Thompson's Inside Business Report of Fox News; watch the segement here.



In The News

The New York Real Estate Journal recently featured a "Ones To Watch" Spotlight, focusing on both up and coming professionals as well as industry veterans across all areas of real estate. Congratulations to Lou Fuoco CPA, CEPA, for being included in this prestigious group of “OTW” for 2019!

Press and Events

Fuoco Group and TFG Related Entities are proud to announce that Fuoco Group’s Hauppauge Office, was voted #2 overall in the category of “Accounting Firm Less Than 100 Employees” in the 2019 Long Island Business News Reader Rankings. The Firm was also honored to be recognized as a “top three” Best Accounting Firm Finalist.
Scott Small, CPA, has  joined the Fuoco Group accounting and business advisory firm as Audit and Accounting Senior Manager in the Hauppauge office. Scott will assist the Directors in New York and Florida with expanding the Firm’s accounting and assurance practice.