As a business owner, you probably have never heard the term cost segregation, right? Do you know what that means? The bottom line is it can help save your business an enormous amount of money! Truth be told, cost segregation is a very complex formula that takes many aspects of your businesses into consideration with the end goal being to save money and improve cash flow. Let’s take a moment and look into cost segregation and try to simplify a very complex process.
In the simplest terms, a cost segregation study is designed to reduce current income tax obligations. By reducing a business’s current income tax obligations, the business is able to save money which increases cash flow for the business as a whole. A cost segregation study will identify all of the building components for the purpose of shortening the depreciation period. The assets that can be accelerated in a cost segregation study include the physical building’s non structural elements, the exterior land improvements as well as any indirect construction costs. The goal of any cost segregation study is to identify all qualifying assets whose depreciation can be lowered.
Did you know that more than 95% of all commercial real estate is depreciated over 39 years? Our team of professionals can help to reclassify these assets and accelerate the depreciation. When a businesses undergoes a cost segregation study, a team of engineers will identify assets that qualify for a deprecation of 5, 7, or 15 years which will save money. This will result in a reduction of taxable income which also means an increase in cash flow. Of course, the increase in cash flow can be used for business operations and help the business to continue to grow.
So, as a businesses owner, can you imagine having more cash flow to do what you need/want for your business? Wouldn’t it be wonderful to have less financial stress so that your energies can be focused on continuing to grow your business? This is what a cost segregation study can do for you. All you need is a physical location (building, condo or leasehold improvement) and a business that is profitable to qualify for a cost segregation study. Any type of brick and mortar business can qualify for a cost segregation study as long as your business is not in the red.
The time to start saving money for your business is right now. Why not contact us today and request your free quote today. At Segregation Holding, we help our clients keep more of their money and we take pride in working one on one with all our clients. Give us a call today at 972-897-8019 to request your free benchmark estimate and let’s get the study underway!