70 likes | 77 Views
Cost segregation is a specialized and powerful tool that analyses capital costs and allocates costs between different depreciable lives.<br>Bonus depreciation allows you to immediately deduct a certain percent of the assets cost in the very first year it was placed into service<br>Know more from www.expertcostseg.com<br>
E N D
www.expertcostseg.com CAN CSS HELP IN INCREASING THE RATE OFRETURN?
An Introduction toCSS Cost segregation is a specialized andpowerful tool that analyses capital costs and allocates costs between different depreciablelives. Cost segregation accurately allocates property components for federal income tax depreciation calculations. Cost segregation study benefits include increased cash flow, improved ROI, reduced taxesand the ability to catch-up on pastyears.
Industries that benefit from aCSS Apartments Hotels Office buildings Shoppingcenters Retail Drug stores Private schools Medicalbuildings Nursing homes Funeral homes Manufacturingunits Warehouse Storage Restaurants Fast foodfacilities Auto dealership Banks REIT's and greenbuildings.
Bonus Depreciation & CostSegregation Bonus depreciation allows you to immediately deduct a certain percent of the assets cost in the very first year it was placed intoservice Assets that are reclassified as personal property are eligible for bonus depreciation and can be expensed in the very firstyear It is not necessary that a CSS should be done in the year of acquisition, it can also be performed on properties that were place into service in a prior year where the tax returns were alreadyfiled
Can CSS help in increasing the rate ofreturn? A cost segregation study assesses your real property assets and then identifies those assets that can be treated as personalproperty Once identified, a CSS reassigns the costs over a 27.5-year or a 39-year period to the asset group that has a shorter recoverylife About 20 to 35 percent are reclassified to tax lives of 5,7 or 15years Hence, huge tax deductions are available in the early years of investment rather than it would be using a straight line depreciation over a27.5 or 39years. This in turn increases cash flow and reduces tax liability
FinalThoughts Commercial property owners planning to hold their real estate over a long run can benefit from a cost segregationstudy Professionals with expertise in the field can help you identify If the benefits from a CSS will outweigh thecosts.
www.expertcostseg.com ThankYou