Commercial Property Owners Save....
My consulting company has produced a record number of Cost Segregation Studies this year. We have increased Cash Flow cumulatively for these owners by $2,650, 000 just in 2015 alone.
Cost Segregation is the practice of identifying assets and their costs, and classifying those assets for federal tax purposes. In a cost segregation study, certain costs previously classified as subject to 39-year depreciable life, can instead be classified as personal property or land improvements, with a 5, 7, or 15-year rate of depreciation using accelerated methods. An "engineering-based" study allows a building owner to depreciate a new or existing structure in the shortest amount of time permissible under current tax laws.
The benefits of a cost segregation study include:
- An immediate increase in cash flow
- A reduction in current tax liability
- The deferral of taxes
- The ability to reclaim "missed" depreciation deductions from prior years (without having to amend tax returns)