Commercial Property Owners Reduce Taxes With Cost Segregation
Are you a commercial property owner? Did you know that in 1997 the IRS lost a landmark court case to Hospital Corporation of America? This court case led to a tax strategy known as cost segregation. It allows for the accelerated depreciation of qualified assets to a shorter life span. Generally speaking most commercial property assets are scheduled to receive a depreciation life of 39 years. A cost segregation study looks for all assets that can be reclassified. Some reallocation goes to tangible personal property over 5 or 7 years. Some reallocation goes to land improvements which can be depreciated over 15 years. By shortening the depreciation life of these assets, business owners will be able to lower their income tax burden which increases their cash flow. As a commercial property owner you can surely see such a benefit!
It has been estimated that a properly done cost segregation study can offer upwards of $150,000 of additional accelerated depreciation for every million dollars of building tax basis. This includes the purchase and/or the construction costs of the property, minus the land. By applying cost segregation to your building or tenant improvements, a tremendous amount of money can be saved. Not only will a cost segregation study help to lower the income tax burden that you are currently facing but you will also be able to reap some additional benefits. These include increase in cash flow, a potential reduction of insurance premiums, as well as having the leverage to negotiate better bank terms. All in all, a cost segregation study done by Segregation Holding is bound to help your business keep more of your hard earned money.
Wondering what the qualifications for a cost segregation study may be? As long as your business is profitable (pays federal income taxes) and has a physical location, you will qualify for a cost segregation study. At Segregation Holding, we work one on one with our clients to ensure that you are receiving the maximum amount of savings. We are so confident that our proven methods will work that we even offer a guarantee. Don’t just take our word for it though, take a moment and review some of our case studies and testimonial letters. You will find that in over 99% of the time, our results far exceed our original estimate.
Contact us at 972-897-8019 or 443-Cost-Seg.