Cost Segregation
What is Cost Segregation?
Something called cost segregation may help owners of commercial real estate save significantly on their federal income taxes. Cost Segregation is a tax planning tool that determines how quickly an owner should be depreciating the property on his income taxes — five years, seven years, 15 years, 27.5 years or 39 years. The Internal Revenue Service allows owners of commercial properties to accelerate depreciation on their real estate, which will result in reducing the property owner’s taxable income levels.
A cost segregation study is an in-depth analysis of the costs incurred to build, acquire or renovate a real estate holding. The primary goal of a cost segregation study is to identify all construction-related costs that qualify for accelerated income tax depreciation. Small or large, your business can save money with a cost segregation study, typically many times the amount you invest.
Effective Process counts
There is nothing new about taxpayers looking for ways to minimize tax payments and maximize savings.
The challenge,however,is to find legal methods of taking deductions or deferring tax payments.
Greenhill funding has built relationships with Accounting anr engineering firms that specialize in Cost segregation studies, these studies are comparatively new and kegitimate way to save save tax dollars and boost cash flow. As with any practice,however,there are many ways to achieve the savings goal. Some are more effective than others.
A Comprehensive approach
Cost segregation studies identify each asset in the renovation or contruction of commercial properties so that that property owners can clasify certain items as tangible personal property or land improvements. The result: singnificantly shoter depreciation lives that translate into greater tax deduction and tax deferral oppurtunities.
