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Tangible Personal Property and Cost Segregation: Your solution to saving money!

Posted on January 14, 2014 by Jeff Hobbs

Tangible personal property and cost segregation…your solution to saving money!

businesswomanEvery business owner out there is always looking for a way to save money! Just ask yourself how many times you asked the million dollar question, “What can I do to save more and increase my cash flow?” A good business owner like yourself is always in the market for a cost saving alternative. Did you know that chances are great the assets sitting in your business right now can be the solution to that million dollar question?

By simply reallocating your assets with a cost segregation study, you will save a tremendous amount of money. Even lower your income tax burden! Tangible personal property is generally set to depreciate over 39 years. Your CPA lumped it into the total purchase price or construction cost when the depreciation schedule was set up. However, a cost segregation study allows this personal property to use accelerated depreciation. By doing so this shortens the deprecation period to 5 or 7 years. The IRS defines tangible personal property as “any tangible property, except land and improvements thereto, such as buildings or other inherently permanent structures (including items which are structural components of such buildings or structures).”

So, what does this mean to you as the business owner? Savings, savings and more savings. Do you have any office equipment, production machinery, printing presses or even display racks and shelving units? These are considered FF&E and qualify for 3, 5 or 7 year depreciation. What about your carpet/flooring, your cabinetry or your dedicated electrical and plumbing? These are all tangible personal property. For example, 30% to 90% of the total electrical costs in most buildings can qualify for 5- or 7-year depreciation. Just imagine what that type of savings could do for your cash flow. All of these personal property assets, and many more, qualify for accelerated depreciation using the MACRS method of depreciation. A cost segregation study done by Segregation Holding will help you to keep more of your hard earned money.

Elgin Shopping CenterA member of our team of professional engineers will come to your location to begin the cost segregation process. We will look at all assets (personal property, FF&E, & land improvements) and photograph/catalog for IRS verification. Land improvements qualify for accelerated depreciation just like tangible personal property. This site survey is a vital step in the process of reallocating assets. We want you to begin reaping the benefits of accelerated deprecation immediately. Time and time again our results far exceed our clients expectations. As long as your business is profitable and paying federal income taxes, we can help. In fact we are so sure of this that we even offer a guarantee.

We are always available to answer any questions about accelerated depreciation, tangible personal property, MACRS, cost segregation, or any other tax-related topic. So take a moment and fill out our free quote form and let us start saving you money today!

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

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