Give us a call today at (561) 997-7216 to learn more and we’ll show how you will profit from rapid depreciation by legitimately paying the IRS less and keeping more money in your own pocket.
Cost Segregation Studies
Analyzing depreciable buildings and property to maximize your tax depreciation deductions for real estate is our specialty.
Are all of your project costs depreciated over the standard 39-year term? Our professionals will help you reclassify those costs to lower your tax bill with a Cost Segregation Study (CSS), or we’ll work with your outside CPA to get the job done.
An owner or developer can write-off certain assets installed in buildings over only 5, 7, or 15 years instead of the standard 39 years (commercial property) or 27.5 years (residential property). How? With a properly prepared cost segregation study, the result is significant tax savings!
Rapid depreciation may be applied to:
- A potential 25% to 45% of cost of commercial facilities
- Approximately 10% to 25% of the cost of warehouse, apartment, and office projects
Consider a recent cost segregation study for a 55,000 square foot facility that included manufacturing space, truck docking and truck parking areas. Roughly 39% or $1.0 million was reclassified for rapid depreciation, creating a net present value tax savings of approximately $160,000. The net cash savings from lower taxes is over $200,000 during the first six years. The first year savings was more than $30,000!
* If you’re a CPA, call us today about adding CSS to your menu of services. Why not leverage our experience? Learn how we work with your firm to support your client needs.