Cost segregation accelerates depreciation on qualifying assets.
These assets fall into two IRC categories: Section 1245 and Section 1250. Sec. 1245 property is depreciated over 5 years, 7 years or 15 years. Certain other Sec. 1250 property is depreciated over 15 years also. Examples of Sec. 1245 property include carpet, movable partitions, cabinetry, secondary lighting, crown molding, specialized plumbing, dedicated electrical systems, security systems, sprinkler heads, emergency exit lighting, and much more. Some Sec. 1250 property includes site work for drainage, collection basins, retaining walls, fencing, and more.
Why accelerate depreciation? The simple answer is that the dollar is worth more today than tomorrow. The reason for this is again simple…inflation. Inflation eats into the dollar we earn today which buys us less tomorrow. So the obvious conclusion is to use cost segregation to always accelerate depreciation. This gives the commercial property owner as much of his money possible today. Cost segregation increases purchasing power. Cost segregation puts cash in the pocket of the commercial property owner. Cost segregation does this by accelerating depreciation on qualifying assets which reduces your income tax burden. If you pay less income tax you have more cash in your pocket. Cash you can use to reinvest in your business, building or whatever you choose. Cost segregation also cuts real estate taxes. Why? Cost segregation reduces the amount of real property. Cost segregation increases the amount of personal property. Tangible personal property is assessed at a lower tax rate.
Cost segregation is a tax strategy commercial property owners can easily take advantage of. Any reputable cost segregation firm will provide a free estimate of accelerated depreciation benefits. Most cost segregation firms will also provide a fee estimate for cost segregation services rendered. If you are interested in cost segregation, do the smart thing and investigate cost segregation firms. Use Google or Bing or Yahoo or your favorite search engine. Use search terms like “cost segregation delivers results” or “cost segregation benefits” or “cost segregation services.” If you want to include your city name in your search, please do so.
Remember, cost segregation delivers cash to your pocket by removing it from the IRS’ pocket!
Cost segregation delivers results every time it’s applied!
To learn more, or to receive a free estimate, click on FREE ASSESSMENT to open a simple one-page client profile questionnaire. Complete this brief survey and we will provide you with a detailed benchmark analysis identifying the expected accelerated depreciation as well as the fixed fee for service.