Commercial property owners, here is an eye opener for you. Reduce your federal income taxes with a cost segregation study. Have you recently purchased a building or spent dollars on appliances or furnitures? Cost Segregation helps you shorten the useful life of assets using the accelerated depreciation method which in turn reduces your tax liability resulting in an increased cash flow. It is truly a hidden gem for taxpayers, continue reading this article and you will know why.
Cost Segregation – Tax strategy used by commercial property owners Cost segregation helps you identify personal property assets, say a building's non-structural elements, indirect construction costs or exterior land improvements and lessens the depreciation time for taxation purposes which in turn reduces tax obligations. It is a proven IRS defined method for depreciating commercial properties and is also considered the most accurate method for any asset acquired or constructed after 1986. Cost segregation helps in increasing the cash flow, reduces the current tax liability, deferral of federal income taxes and has the ability to recapture past years. Does your property qualify for cost segregation? There must be this big question popping in your mind right now, many have the false idea that cost segregation can be conducted only on newly constructed buildings, but this is not the case. A cost segregation study can be conducted on any real property
Let’s imagine that you own a commercial building for the past forty years and you have been getting 1/40th of the building's value as a tax deduction every year. This might prove useful for you during the tax time but there is another smart way to do it and this is where cost segregation comes into play. Many aspects in a building like carpenting, plumbing fixtures, lighting, etc. do not last for long and these components can be segregated from the building for tax purposes. Yes, you heard it right. A cost segregation study can help you reduce your tax liability by detailing all the available short-term depreciable assets. Common myths about cost segregation
Is cost segregation worth your effort? Yes, as mentioned above it is truly a gem for property owners. It is the best tax strategy where accelerating depreciation results in lowering your tax due. It helps in increasing the cash flow and decreasing the current tax liability.
0 Comments
Leave a Reply. |
AuthorHi everybody, Archives
June 2022
Categories
All
|