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Cost Segregation Study; Is it Really Worth It?

Posted on January 24, 2014 by Jeff Hobbs


Cost segregation; is it really worth it?

Have you ever wished that you could lower your income tax burden? Maybe you wish that you had more cash flow to grow your business? As a business owner, you face a lot of unique financial challenges that may drive you crazy. This is where a cost segregation study done by Segregation Holding will help. Let me explain why a cost segregation study may be the best thing since slice bread for your business.

Cost segregation is well kept secret. In fact, only about 5% of Americans are familiar with this effective IRS accepted depreciation method. Most of these are cost segregation engineers, CPAs, tax attorneys, and related professionals. A cost segregation study is the process of reallocating qualifying assets to depreciate over a shorter life span. For instance, your dedicated electrical and plumbing are assets qualifying for accelerated depreciation. By applying accelerated depreciation to these assets their "depreciation life" becomes 5 or 7 years. This goes for all tangible personal property. This includes carpeting & flooring, mill-work, cabinetry, decorative lighting, and much more.

Fill Dirt

Earth Movement

Cost segregation provides additional benefits as well. While the main focus of the study is to help lower taxes some amazing benefits will also follow. Depending on your state, you may qualify for lower property & casualty insurance premiums. In most areas, your real estate taxes will drop. Why? Because tangible personal property may be assessed at a lower rate than real property. Additionally, you may be able to negotiate better terms with your bank. Again, the reason is simple. A cost segregation study increases cash flow. Your banker sees that as additional "debt-service" coverage. For many, a cost segregation study increases debt-service coverage as much 2 to 3 times.

So, to answer our initial question of "Is Cost Segregation really worth it?"

Governor's Club

Governor's Club

It appears the answer is 1000 times yes! That is if you are looking for a way to keep more of your hard earned money. Or lower your income tax burden. Or reduce your operating expenses. Why not find out how we can help your business today? At Segregation Holding, we offer a free estimate. Since we are so confident in our work we even offer a guarantee.

Contact us at 972-897-8019 or 443-Cost-Seg.

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