Have You Paid Thousands, Even Millions in Unnecessary Income Taxes?

1. Have You Paid Thousands, Even Millions in Unnecessary Income Taxes? Cost Segregation Analysis: Depreciate Property Correctly & Pay Less Federal Tax

2. Income taxes a burden? Income taxes are a substantial burden and the laws are amazingly complicated Few are aware of how simple it is to recognize “catch-up depreciation” for prior years Many believe that increasing the level of depreciation simply defers payment of income taxes Cost segregation increases depreciation by classifying a significant portion of the original cost basis as short-life property.

3. The role of cost segregation Cost segregation produces increased depreciation and reduces federal income taxes in commercial and multi-family properties wherever US federal tax law applies. Cost segregation produces tax deductions for virtually all property types. Typically, as long as the depreciable basis is $500,000 or more, the tax benefits should outweigh the cost of the service. Some examples of ideal property types are discount stores, shopping centers, health clubs, medical office buildings, apartment properties, office buildings, hospitals, restaurants, hotels, etc

4. Benefits of Cost Segregation Analysis Benefits of a cost segregation study are substantial, immediate and enduring. Year 1 federal income tax savings are typically at least two times the cost of a cost segregation study. In many cases they are five to fifty times the cost of the study. The present value of federal income tax savings for a property held for ten years are typically at least ten times the cost of the study. In many cases, the present value of tax savings as much as 30 to 50 times the cost of the report. The cost segregation study is only required once. Its cost is not recurring, but the benefits are recurring during the term of property ownership. A cost segregation study can also materially reduce local property taxes by separating real and personal property for newly constructed properties.

5. Summary of the results of a cost segregation study for an office building

6. The best time to obtain cost segregation services The best time is when you build or purchase a property. Documentation is most readily available for performing a study and a contemporaneous property inspection can be performed to best document results. However, there are options to perform a cost segregation study for property which has been developed or purchased previously.

7. Get to know more on cost segregation www.expertcostseg.com