How Cost Segregation Can Help You

Are you paying attention to your tax liability? It may not sound exciting, but it can save property owners a lot of money, freeing up cash for investment in your business.

Want to know more? You need to learn about cost segregation, which luckily for you is the topic of this article. You’re welcome.

What is Cost Segregation?

Cost segregation is a tax strategy that allows commercial property owners to reduce their federal taxable income. The process begins with a Cost Segregation Study or Analysis of the property. When performed properly, cost segregation can reduce the property owner’s income tax rate through asset depreciation acceleration. This in turn improves cash flow and impacts revenue and profitability.

Via cost segregation, we’ll assess your real property assets and determine whether we can treat some of those costs as personal property. In so doing, you may be able to depreciate some segregated assets more quickly, or even expense them today.

A professional cost segregation consultant will follow a thorough process analysis to identify the opportunities to reduce tax liability in your property. After the analysis, you’ll know whether you qualify for depreciation and how to benefit from the tax laws available to commercial property owners.

Qualified Items under a Cost Segregation Analysis

  • Electric system
  • Lighting fixtures
  • Heating and cooling systems
  • Ventilation
  • Wiring
  • Cabinetry
  • Phone and communication networks
  • Computer systems
  • Plumbing
  • Storage units
  • Parking lots
  • Underground storage tanks
  • Carpeting
  • Wall fixtures
  • Flooring
  • Landscaping

You should consult with a certified Cost Segregation analyst to have a study done on your property and associated assets.

EDSS has the experience to help you with Cost Segregation

Recent changes to the tax code has made it even more beneficial to consider cost segregation. At Energy Design Service Systems, we stay on top of the latest tax laws and apply them in our cost segregation analysis. With EDSS working for you, we identify the assets that you can segregate and depreciate, saving your business money and freeing up cash for other purposes.

Contact an EDSS Cost Segregation expert today for more information. 

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See if you qualify for tax deductions under 179D EPAct.

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