1 / 6

How does a property qualify for cost segregation?

Cost segregation studies can benefit taxpayers who purchase,<br>construct, expand, or renovate real estate property. The study takes<br>the cost of each component of a qualifying real estate investment<br>and reclassify and break it down among shorter recovery periods.

expertcostseg
Download Presentation

How does a property qualify for cost segregation?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. How does a property qualify for COST SEGREGATION? www.expertcostseg.com

  2. Cost segregation is a highly beneficial tax planning strategy utilized by real estate investment companies to: 01 Accelerate depreciation deductions. 02 Defer tax. 03 Improve cash flow. Cost segregation studies can benefit taxpayers who purchase, construct, expand, or renovate real estate property. The study takes the cost of each component of a qualifying real estate investment and reclassify and break it down among shorter recovery periods.

  3. Benefits of a Cost Segregation Study Increase in cash flow Reduction in current tax liability Deferral of Federal Income Taxes Ability to recapture past years

  4. Does Your Property Qualify For Cost Segregation? Any type of a commercial property placed into service after 1986 qualifies for cost segregation. Most developed commercial real estate that meets the following minimum guidelines qualify for cost segregation: Real property acquired, built or significantly remodeled after 1986 Commercial for profit venture Depreciable basis of at least $500,000

  5. WHO DO COST SEGREGATION STUDIES BENEFIT? Cost segregation studies are not right for everyone. They are typically used by commercial real estate investors. Thus, with cost segregation, you can reclassify a portion of your assets as personal property instead of real estate property in order to depreciate them on a much for tax purposes. This lessens your tax burden, thereby leaving you with more profit.

  6. Before you decide to buy property, it’s a good idea to talk to your tax professional to be sure you’re making the right move for your business. www.expertcostseg.com

More Related