What is Cost Segregation?

Cost segregation is something that few people know about, but it can help you with your business. People pay a huge amount in taxes each year for their business. The good news is that there are ways to assist these business owners in decreasing the amount of taxes they are required to pay. Cost segregation is searching the correct opportunity and knowing the correct way of taking advantage of the time value of money and is, for all intents and purposes, an interest-free loan from the Federal government. If your organization can benefit from additional deductions - even if that means taking advantage of benefits of net operating loss carry backs or carry forwards, then cost segregation might provide you a great cash advantage. Cost Segregation is a method to speed up the depreciation of certain real estate building and renovation costs - leading to a direct reduction in income taxes owed and a corresponding improvement in cash flow.

Through cost segregation, one can access the depreciation of property and the way the resulting taxes are calculated, based on these figures. Cost segregation is a field of special expertise and it should be done with professional help only. One has to make sure that you hire a cost segregation business that you will be able to trust and work with for many years to come. This will pay dividends in the long run and though initially it may not be easy to understand how much this can benefit your business, this is something from which you will reap benefits for years; it is not just a one time event. If you are continuously saving money, it will be highly productive in the long run and you may be able to do much more with your business and increase your savings.

Cost segregation studies use engineering and cost-estimating procedures to identify shorter-lived assets qualifying for 5-, 7- or 15-year write-off periods

Benefits of Cost Segregation:

Reduce income tax liability

ROI ranges from 10:1 to 20:1

Cash flow to meet financing qualifications

Enhance your property's financial return

Correct classification of assets and receive "catch-up" benefits

Write-off building components as they need replacing

Gain Maximum depreciation benefits through proper planning during construction and remodeling

Potential property tax and insurance cost reductions

Gather a, third-party analysis that can withstand IRS scrutiny

A free initial analysis with detail estimated tax benefits