Cost segregation services benefit commercial property owners in many ways. How you ask? Well, let's look at a brief list:
1) Cost segregation accelerates depreciation
2) Cost segregation reduces income tax burden
3) Cost segregation increases cash flow
4) Cost segregation reduces real estate taxes
5) Cost segregation reduces property insurance premiums
6) Cost segregation places the commercial property owner in IRS tax compliance
Cost segregation delivers results for any commercial property owner. Some industries, however, cost segregation works exceptionally well for. Here are some examples:
1) Dentists & Orthodontists 2) Physicians & Medical Groups 3) Multi-family, apartments, condos 4) Light manufacturing 5) Heavy manufacturing 6) Self storage facilities 7) Restaurants 8) Retail 9) Office buildings, and many more
Industries such as dental, medical and manufacturing have many specialized systems qualifying for accelerated depreciation. These include dedicated plumbing & electrical systems, dedicated lighting, specialized HVAC & air handling equipment, just to name a few. Cost segregation identifies these systems and "segregates" them out as 5-year assets. In many instances these systems can run several tens or hundreds of thousands of dollars. Imagine what it would do for your cash flow to reclassify those assets to 5-year. Let's say you had $100,000 in dedicated systems being depreciated over 39 years....thats's $2564 in depreciation per year. With cost segregation applied, now that $100,000 is depreciated over 5 years...that's an average of $20,000 per year for this example. Actually, when the depreciation is accelerated into 5 years it becomes what is called MACRS or Modified Accelerated Cost Recovery System. This classification applies depreciation differently from the "Straight Line" method...it is called a 200% Declining Balance.
So what does this mean ultimately? It means you now have more of your money today to use as you see fit. Cost segregation pulls tomorrow's dollars out of your building and gives it to you today. Ask your CPA about the time-value of money. Your CPA or tax advisor will confirm your money is always worth more today than tomorrow!
Cost segregation isn't magic, smoke and mirrors. Cost segregation is a legitimate tax strategy allowing any commercial property owner to take more control of his or her finances. Cost segregation puts cash in your pocket.
Cost segregation delivers results every time it's applied!
Do you want to learn more and find out how much cash you pull from your commercial property? Click on Free Assessment to open a simple one-page questionnaire. Complete and submit it to us for a complimentary analysis of your property. This "benchmark" will tell you how much cash cost segregation will give you AND how much our fee will be to get it.
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