Cost segregation reclassifies assets to maximize personal property, optimizes depreciation deductions, and results in substantial cash flow benefits. If you have acquired business properties through purchase, new construction, renovation or leasehold improvements, you may benefit from cost segregation.
Any property held for a business purpose is subject to depreciation and may benefit from a review. This includes both new and existing properties. An "engineering-based" study allows a building owner to depreciate a new or existing
structure in the shortest amount of time permissible under current tax laws. Taking higher deductions now, instead of the future, allows you to receive an interest free loan to invest as you see fit.
The Benefits of Cost Segregation include:
- An immediate increase in cash flow
- A reduction in current tax liability
- The deferral of taxes
- The ability to reclaim "missed" depreciation deductions from prior years (without having to amend tax returns)
Who is a Great Prospect?
- Companies with significant real estate holdings
- Companies who renovate or expand their operations on a regular basis
- Real Estate investors
- Studies can be performed on a retroactive basis for assets placed in service in prior tax years
Call us to see if you might benefit from this tax deduction.