What is cost segregation?
Some folks say cost segregation is only for the big guys. That it only benefits companies that are worth millions and millions.
Cost segregation can benefit many types and sizes of businesses and property owners. Whether you own one building or dozens of properties worth oodles of money, it’s smart to investigate the benefits of cost segregation. You want to be a smart business owner, don’t you?
Examples of property owners who benefit from Cost Segregation
Let EDSS check into cost segregation for you if:
- You recently purchased a commercial building valued at more than $750,000.
- Your building was purchased within the last twenty years.
- You wish to depreciate assets quicker than the normal 27.5 or 39-year rate for commercial property.
- You recently completed or are considering a remodel, expansion, or improvements to your commercial property.
- You plan to purchase a second building to expand your footprint.
- You are unhappy with your tax rate and want to explore options for reducing it.
- You are confused by the tax code and need assistance while planning your building or purchase.
When should you have a Cost Segregation study?
The optimum time to have a cost segregation study is in the same year you construct, remodel, expand, or purchase your building. It’s beneficial to have the process started before the infrastructure of the building is set. However, under law, you can perform a cost segregation any time, on any property purchased in the previous twenty years.
EDSS can perform a free preliminary consult to identify the right timing and strategy for any property owner or real estate investor.
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See if you qualify for tax deductions under 179D EPAct.