It’s never too early to think about your taxes and ways to save money. One items mostly overlooked is the depreciation of the construction of your building.
A simple cost segregation analysis can help you determine if you are getting the most savings possible. Cost segregation is the process of identifying, segregating, and reclassifying components of commercial property into shorter depreciable tax lives. The core benefit of a cost segregation study is the additional cash flow that is created by reducing an owner’s current taxable income. For all practical intents, a cost segregation study can be viewed as a long-term no-interest loan from the federal government. What’s more, the cost of the study is a deductible business expense.
Who can benefit from a cost segregation study?
A good cost/benefit analysis begins with answering these key preliminary questions:
Does the property qualify for these tax benefits?
What is the owner’s tax status?
How long does the owner plan on owning the building?
Want to know more? Contact us today
Carleton Compton ccompton@equity.net or Jason Scott jscott@equity.net
Filed under: Cost Saving Solutions | Tagged: building depreciation, construction depreciation, cost segregation, tax savings, tax strategy | Leave a comment »
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