Cost Segregation can be applied to most business properties that are $500,000 or more. A look-back Cost Segregation Study can also go back as far as 1987.
Cost Segregation Engineers (CSE) will give a free estimate of potential tax benefit. In general, furniture, fixtures, and equipment (FF&E) are depreciated over 5 or 7 years for tax purposes. However, CSE considers more than just the general personal properties that are listed on the receipt or contractor’s documents. CSE also estimates and allocates overhead costs into both personal and real property. Current property owners should contact our Cost Segregation Engineers Specialist now and help gain this real property tax benefit.
What is Cost Segregation?
Something called cost segregation may help owners of commercial real estate save significantly on their federal income taxes. Cost Segregation is a tax planning tool that determines how quickly an owner should be depreciating the property on his income taxes — five years, seven years, 15 years, 27.5 years or 39 years. The Internal Revenue Service allows owners of commercial properties to accelerate depreciation on their real estate, which will result in reducing the property owner’s taxable income levels.
A cost segregation study is an in-depth analysis of the costs incurred to build, acquire or renovate a real estate holding. The primary goal of a cost segregation study is to identify all construction-related costs that qualify for accelerated income tax depreciation. Small or large, your business can save money with a cost segregation study, typically many times the amount you invest.