During a cost segregation study one of the questions that will be on the mind of any business owner will be wondering just how much accelerated depreciation can they get? What will be the total outcome and how much of a reduction of tax liabilities will come your way? Not to mention how much of an increased cash flow will be available for all your business needs. The best way to answer these questions will be to have a free estimate done by Segregation Holding but generally speaking there are some specified ranges for commercial properties. Certain types of commercial property can be grouped together to give us an idea of the percentage of those types of buildings that have been eligible for accelerated depreciation.
Types of Commercial Property:
Apartment Buildings 15 – 25%
Dental/Medical 30 – 60%
Health Care 25 – 65%
Heavy Manufacturing 30 – 80%
Industrial 25 – 70%
Light Manufacturing 25 – 65%
Office Buildings 15 – 25%
Research & Development Facilities 30 – 75%
Restaurant 15 – 30%
Retail Centers 10 – 25%
Senior Living Facilities 15 – 30%
Warehouse 5 – 15%
Your results may be greater, or they may be less than those quoted here, but in general, property that falls into one of the preceding categories is most likely to result in accelerated depreciation within the specified ranges. A cost segregation study will also identify assets that qualify for accelerated depreciation such as the buildings non-structural elements. Typical components that can be reclassified include a building’s non-structural elements, such as carpet, decorative lighting and trim, dedicated electrical and plumbing, mill-work, cabinetry, and security systems; exterior land improvements, such as landscaping, curbs, sidewalks, fencing, and signage; and indirect construction costs, such as architect and engineering fees and construction permits.
Choosing to have a cost segregation study can be one of the best things that you do for your business. From the reduction in tax liabilities to an increased cash flow, the possibilities of what you can achieve for your business are endless. Instead of having to worry about your cash flow, you can choose to reinvest in your business or take that much needed vacation. The choice is yours, but you need to act today and have your cost segregation study done. At Segregation Holding, we help our clients keep more of their hard earned money. We deliver results every time accelerated depreciation is applied using cost segregation. Chances are great that our results will far exceed your expectations.
Contact us at 972-865-9050.
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