Many commercial property owners overpay federal income taxes every year because they do not take advantage of allowable depreciation expense deductions.
These accelerated depreciation expense deductions are readily available to all federal taxpayers under existing IRS tax laws.
With an engineering-based cost segregation analysis, the taxpayer is able to take full advantage of the tax law, thus forgoing the significant cash flow remitted to the IRS each year. We utilize IRS-accepted methodologies and existing tax law, revenue rulings and case law to achieve substantial tax saving benefits for clients.
A cost segregation engineering study may be conducted on any building that has been placed in service by a tax paying company that does not show an operating loss.
Great cost segregation opportunities include:
- New construction and renovations
- Acquisitions of property
- Buildings that have been previously placed in service without a cost segregation study and are currently depreciating entirely over 27.5 or 39 years
- Clients with a large asset base that have numerous small assets (i.e. retailers)
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