Are you Purchasing, Constructing, Improving, or Inheriting Commercial Property?
If so, you may benefit from substantial tax incentives and cash savings by conducting a cost segregation study.
Performing a cost segregation study is a valuable strategy for any commercial property owner. Cost segregation is designed to maximize depreciation and cash flow by using a specialized engineer-based analysis to reclassify purchased, constructed, improved, or inherited commercial property into several, shorter-life assets.
Construction projects are often capitalized on a company’s books as land, which is a non-depreciable asset, and buildings, which are generally depreciated over a 39-year period (27.5 year period for residential rental properties). However, as a result of our firm’s comprehensive cost segregation studies, we are able to save companies significant upfront tax dollars today by categorizing the property into the appropriate shorter-life asset classifications.
Why Conduct a Cost Segregation Study?
By conducting a cost segregation study, commercial property owners can maximize their depreciation deductions, accelerate income tax deductions, and increase their cash flow. Some of our cost segregation studies have produced ROIs over 1,000%, representing tremendous tax savings.
Without getting into the specific mechanics, cost segregation studies benefit the commercial property owner through increased upfront tax savings and cash flow through corresponding tax deferrals, allowing property owners to see returns within the first year of ownership.
Additionally, by segregating commercial property into individual assets, commercial property owners gain the substantial ability to write off segregated assets (e.g. roof, windows, boilers) should they later become obsolete, damaged, or replaced.
Receive a Free Consultation from an Industry Leading Partner at Bentley Consulting Group, LLC
Give us a call, or contact us via the form above to receive a free consultation from the Director of Cost Segregation services, Leah Szlatenyi, CPA/ABV/CFF, CVA, MSPFP, MST.
As required by U.S. Treasury Regulations governing tax practice, Bentley Consulting Group, LLC informs you that any tax advice contained in this communication (including attachments) was not written or intended to be used for and cannot be used by the recipient or any taxpayer for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.