We identify which components of your property can be assigned tax periods of five, seven, or fifteen years rather than the standard 27.5 or 39 years. Savings drop straight down to the lowest line. Although every property is different, there are several re-classifications that lead to savings. Only a specialist who knows the property components can complete the analysis. It is especially true for developers who choose to work directly with Cost Segregation specialists during the planning stages of a project and who want money in their pockets today rather than years later.
Doing a proper cost segregation study, referred to as CSS, requires the certified people to do it and they must follow the IRS guidelines. So exactly what is the CSS and how did it happen?
Cost Segregation is a product of the IRS. It's actually an IRS procedure. The IRS statutes allow property owners to claim the depreciation on property that should have been taken in previous years.
It started in 1986 with a major overhaul of the tax codes which reduced the amount of deductions. Then in 1997, the U.S. Tax Court ruled for the Hospital Corp of America in a momentous case
(HCA vs. Commissioner) which underscored the ability of businesses to recover the lost deductions.
No more limits to a four-year period for going back, now taxpayers can recover the entire amount of their depreciation in the year the study is completed.
This meant that the IRS had to sanction methods for businesses to speed up the depreciation and not wait to claim it over a period of years. They had to establish accounting practices and decide who could perform the detailed studies.
Our specialists offer a free estimate with a visit to your property or a consultation with you.
This general value allows you to see the possibilities of increasing your cash flow.
How you can save:
Would you invest a nickel for a dollar in return? It is possible with cost segregation. We are one of the few Cost Segregation Specialists in the country with an accomplished and experienced staff dedicated to this type of analysis. Our experts are trained and licensed in accounting and finance and in architecture, taxes, valuation, engineering, and construction. This allows us to identify and segregate personal property assets from real structural building costs. This means significant tax savings for you.
How saving is possible:
This is a gateway to great savings through re-classification of costs, depreciation deductions, and income tax reduction, all under IRS guidelines. Under the 1997 law, this study must be completed by an engineer, architect, appraiser, or cost estimator with cost segregation expertise. Our experts are on staff and prepared for extensive research to offer commercial and industrial property owners the savings they deserve.