Maritime

Marcum’s Maritime Group is uniquely positioned to guide vessel owners, lessees, and maritime industry executives through ever-changing tax rulings. Our dedicated professional staff can provide the personal attention that is necessary to increase cash flow.

A cost segregation study produces various analyses and reports (prepared by qualified engineers, appraisers and financial advisors) that provide the support and basis for accelerating periods of depreciation.

Cost Segregation Study

We help clients realize the benefits related to cost segregation, which is a process through which particular portions of a vessel (owned or leased) can be reclassified for depreciation purposes. Specifically, certain portions of vessels and maritime-related assets can be depreciated over shorter periods of time than the traditional periods.

While the total deduction years does not change, the timing of the deductions does. Various components of a vessel, such as engines, ventilation, stevedoring, and loading and unloading equipment may be segregated. This means they can be written off more quickly – which can mean a substantial increase in cash flow.

Types of properties that are eligible for a cost segregation study

Ships, ocean cargo vessels.
Marinas.
Truck terminals.
Warehouses.
Apartment buildings.
Auto dealerships, service centers.
Casinos.
Banks.
Daycare centers.

Distribution centers.
Gas stations.
Hospitals.
Hotels.
Manufacturing facilities.
Nursing homes.
Office buildings.
Restaurants.
Retail stores & plazas.

Benefits of a cost segregation study

Increased cash flow.
Increased depreciation in earlier years.
Taxpayers can receive an extra 50% depreciation deduction on certain new “qualifying” assets.
Allows for future write-offs when structural components are replaced.
Creates losses so you can carry-back if needed and carry-forward when applicable.
Amended tax returns do not need to be filed as the IRS has an automatic change procedure that allows taxpayers to file forms with their current tax returns and realize the benefit in one year.
The cost of the analysis is relatively inexpensive compared to the ultimate savings.