Did you know that your real estate assets contain hidden value? As a business owner, the chances are great that you are always looking for a way to save money…right? Of course you do! The building (real estate) where your business is located is one of the many key assets of your business and is a major investment. But what if we told you that all of your tangible personal property as well as any land improvements in your real estate may contain hidden value? A value that can help to save your business a tremendous amount of money as well as lower your income tax burden?
Sounds to good to be true, right? We promise you that is not the case.
A cost segregation study is a way to reveal the hidden value that your commercial real estate may contain. By reallocating assets and changing the depreciation life of qualified assets in your commercial real estate, a business owner will save money, lower their income tax burden as well as increase their cash flow. Accelerated depreciation is the result of applying the principles of cost segregation. In most cases, all commercial real estate assets are lumped into the 39 year depreciation life span. However, this is where a cost segregation study will come into play.
What happens during a cost segregation study is that all qualified assets will be reclassified into either tangible personal property or land improvements. When this happens, all the tangible personal property will be depreciated over 5 or 7 years instead of the typical 39 years. The land improvements are eligible for a 15 year accelerated depreciation. By shortening the life span of depreciation on all qualifying commercial real estate assets you receive a tremendous amount of savings. Think about how this could affect your business.
If, as a business owner, you have ever questioned how you could maximize your commercial real estate investment return, the answer is cost segregation. Let us at Segregation Holding help you keep more of your hard earned money today. We offer a free quote and there is never any obligation! We look forward to helping you uncover those hidden assets that are already under your roof.
Contact us at 972-897-8019 or 443-Cost-Seg.