As a business owner would you like to lower your tax burden? Would you like to be able to keep more of your hard earned money so that you can reinvest that into your growing business? Maybe you would simply like to go to Hawaii or Europe…or maybe buy that new Mercedes C550 with cash! With a cost segregation study all of these scenarios are possible and is something that is within your reach. If you are a profitable business and own or lease your building, a cost segregation study can offer numerous benefits. Let’s take a peek at what those are:
A cost segregation study will reduce your income tax burden by applying accelerated depreciation on all of your assets. During the study we will review all your building assets and identify what assets can be depreciated over a shorter time period. This time period is usually 5, 7 or 15 years instead of the standard 39 years. A cost segregation study will allow you as the business owner to take advantage of these lower depreciation periods as well as defer federal and state income taxes. All of this increases your cash flow and will allow you to keep more of your money!
Another benefit of having a cost segregation study done is that our team can help identify any deprecation that you may have failed to take in the past. If we find assets that qualify, a tax credit can be carried forward into the current tax year. We will file IRS form 3115 using IRC Sec 481a catch up provision that affords you this benefit.
A cost segregation study will increase your cash flow and when this happens, you may be able to negotiate better terms with your current lender. In new loan cases, brokers may be able to negotiate better terms for you by reducing the interest rate up to 1% or in some cases may be able to reduce the amount of down payment needed. This is due to the fact the debt-service coverage ratios are generally increased when cost segregation is applied. Just another way that a cost segregation study will help you keep more of your money.
During the cost segregation study process, we will find assets that can be reclassified as tangible personal property. This can result in lower real property value which in turn can often reduce your real estate taxes. We have seen a reduction of real estate taxes as high as 25% which as you can imagine would be tremendous for your business.
Times are tough and as a business owner being able to keep more of your money is always your mind. A cost segregation study can help your business in numerous ways and the professional team at Segregation Holding is ready to help save in any way that you can. Consider a cost segregation study today and begin pocketing more of your money. Visit us at www.segregationholding.com today!