Cost Segregation helps building owners save money.
If you are paying Income Taxes, as a building owner you can use Cost Segregation to help lessen your tax burden. You will want to consult a professional Cost Segregation Services firm that specializes in this process to help you make important decisions.
If you have more than one building, you will want to see if you can use Cost Segregation to benefit all of your buildings. This may free up much needed funds that you can use for other aspects of your business.
There may be some areas of Cost Segregation that you simply do not understand and this is where a knowledgeable Cost Segregation specialist can guide you through the process and help you understand anything that you have concerns about.
In most cases, a building owner’s Tax Professional is aware of the Cost Segregation process. However, because Cost Segregation is not an accounting specialty, most Tax Professionals do not do Cost Segregation. At CSSI, Cost Segregation is all we do! We are the premier provider of Engineering-based Cost Segregation Studies in the USA.
If you’d rather not overpay your taxes, request a free quote on the right of the screen.
Cost segregation was first applied and performed by major accounting firms with in-house cost segregation departments on the largest properties of their most significant clients. One study originally cost upwards of $100,000.
Now companies can deliver this same service to commercial property owners at very affordable rates. This means you can take advantage of this tax savings that was once only enjoyed by the owners of exceptionally large properties.
Yes, if you:
1) Purchased, constructed, or remodeled property after Jan. 1, 1986, and
2) Anticipate holding the property for a few years
Most likely. Please fill out the Free Quote form on the right and we’ll have your income tax savings estimate to you within 2 business days.
It is best to have a study completed for the year the building or improvements are placed in service. However, US Tax Code allow taxpayers to “catch up” on the depreciation that was not claimed from the first day the property was placed in service without amending prior years’ tax returns. Furthermore, the US Tax Code allows for the “catch up” period all in the first year rather than over four years, when the Revenue Procedure 99-49 was first introduced. A cost segregation study can be performed on any property constructed, acquired or remodeled since Jan. 1, 1986.
Companies generally request the following information, if available:
1) A current depreciation schedule if available
2) Building cost information if available
3) Appraisals & Blueprints or a floor plan drawing if available
Building costs are generally classified for federal income tax purposes into three categories;
(1) Tangible Personal Property,
(2) Land Improvements, and
(3) Real Property.
Each has a different recovery period and method under the Modified Accelerated Cost Recovery System (MACRS). An engineering-based analysis is performed by professional personnel with in-depth knowledge of construction methods, materials, and building components can perform a detailed analysis to properly identify the building components and improvements that will be reclassified to take advantage of accelerated depreciation.
Without a Cost Segregation Study your accountant will only be able to use straight line depreciation, 39 or 27.5 years. A Cost Segregation Study provides your accountant with accurate information to establish 5, 7, 15, and 27.5 or 39-year depreciation schedules, which substantially increases tax savings in the earlier years of owning your property.
A Cost Segregation Study normally takes about 6 weeks to complete.
No. A Cost Segregation Study strictly adheres to the Cost Segregation Audit Technique Guidelines.
No. However, for projects not yet constructed, an estimate can be provided on tax savings from your construction budgets.
Choose an engineering-based cost segregation study company that has the expertise in tax laws, cases, and ruling on cost segregation, along with real estate development and construction experience to maximize your tax savings. Only exceptionally large accounting firms have in-house Engineering Analysts who can perform a cost segregation study at substantial fees. A good Cost Segregation company will work with your advisors to help you take advantage of this extremely viable tax savings solution.
There are numerous benefits to those who qualify for Cost Segregation. While no one enjoys paying taxes, it is something that we must do. Fortunately, there are many different tax benefits to take advantage of with Cost Segregation.
Here are tax benefits you will enjoy:
Maximize Tax Savings
The first benefit you can take advantage of is to maximize your tax savings simply by adjusting the timing of deductions. You will find that shortening the life of an asset, accelerates the depreciation expense. As a result, tax payments will decrease during the early stages of a property’s life. Instead of overpaying taxes, you can take this new-found money and invest it back into the business.
Retro-Activity
Since being implemented in 1996, it is possible to claim immediate retroactive savings on any property that as been added since 1987. Before 1996, a business would have a 4-year waiting period before they qualified for retroactive savings. However, you can now take the entire amount of the adjustment in the year you complete the Cost Segregation Study. As a result, this gives you the opportunity to act on retroactive Cost Segregation for older properties to increase your tax savings.
Do you want to see how much money you could save this year? An Analysis for our Cost Segregation Services is absolutely free. Simply fill out the form to the right of your screen.
If you’ve owned your building for less than 15 years and the original cost of your building (plus any improvement costs) is $300 K or more, you should qualify for Cost Segregation. If you’ve owned your building for more than 15 years but you’ve made significant improvements in the last 15 years, you should get a free quote as you very well may benefit from Cost Segregation. This will also work for any leasehold improvements you have made in excess of $200 K.
Are there any reasons not to get a Cost Segregation Study?
Yes. The reasons not to get a Study done would be:
Find out how much you’ll save in taxes! Fill out the short form on the right.
We can save taxes for owners of any type of building!
If you are paying taxes, Cost Segregation is a large tax deduction that many building owners are not taking advantage of.
We work with these types of buildings (and many others):
Request your free quote of tax savings today!
The tax savings from Cost Segregation will differ depending on variables such as how long you’ve owned the building, how much you paid for the building including improvement costs and what the use of the building is – how complex it is.
Here are some recent examples of projects we have completed:
Retail
Building Cost: $ 5,880,000
Tax Savings for Client: $277,477
Apartment Complex
Building Cost: $1,314,163
Tax Savings for Client: $105,416
Bowling Center
Renovation Cost: $613,320
Tax Savings for Client: $34,000
Warehouse/Office
Building Cost: $1,500,000
Tax Savings for Client: $196,735
Office Park
Building Cost $2,528,731
Tax Savings for Client: $183,499
Hotel
Building Cost: $3,773,862
Tax Savings for Client: $182,085
How much will you save in taxes? Fill out the short form on the right to request your free quote!
FREE QUOTE
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