There are very few financial advisors (and even fewer dentists) who have ever heard of cost 
segregation depreciation. Dentists are constantly requesting tax advice from their CPAs as well as their financial advisors. Since they are high-income earners, they want the best people advising them about tax write-offs and how fast they can get them.
Most CPA’s and Dentists know the guidelines for section 179 depreciation, which involves a quick write-off for depreciation for equipment and other non-real property related assets. When the question is posed about cost segregation depreciation, they are at a loss and often feel that it does not apply to a small dental practice.
Cost segregation depreciation is a quasi-science for financial experts that provide this service. 
Many CPA’s do not realize that it is cost effective for a small office building. In years past, cost segregation applied to larger, more expensive commercial buildings (think manufacturing plant, auto dealer, utility, skyscraper office building, mall, etc.). As a result, very few CPA’s recommend cost segregation depreciation and most don’t really understand it very well.
Cost segregation depreciation is well understood and accepted by the IRS. The tax savings are significant for a dental practice if the service is provided by the right experts. And because the rules are complicated, cost segregation is done by boutique firms that do this full time.
Cost segregation actually came about as a result of Hospital Corporation of America suing the IRS…and winning! The Supreme Court of the United States heard arguments from opposing counsel and ruled that there are building components qualifying for shorter depreciation periods…5-years, 7-years and 15-years. This is simple mathematics for forensic accountants.
To provide aggressive tax savings for dental practices, the Dental Accounting Association works with a forensic engineering firm that applies all of the Internal Revenue Code to the advantage of the commercial property owner (the dentist). Specifically, they use IRC § 481(a), the “catch-up” provision. This little section of the tax code allows forensic accountants to give any commercial property owner a windfall tax refund. Without amending a single tax return, they can go back to January 1, 1987 and get your overpaid taxes paid to you in the current tax year. The IRS grants what is called “automatic consent.” For you, the taxpaying property owner, it means the IRS gives you all of those overpaid taxes simply by filing Form 3115. The forensic accountant that Dental Accounting recommends will provide that exact role at no additional charge.
So, if you own or lease commercial real estate of any kind, we can help. Each of our Dental Accountants will recommend the right forensic engineering firm to save you taxes. The service is so complicated that it is not done in-house by your local Dental CPA. The forensic engineers recommended by your Dental Accountant are highly trained in building componentization and applying the tax code to those components.
To initiate this evaluation, simply provide us with your contact information and we will put you in touch with a Dental CPA near you to quarterback this project and identify the potential tax savings.
If you are tired of overpaying taxes, this aggressive tax savings tool is rock solid and black ‘n white.