The IRS has approved and guide-lined a method that accelerates certain depreciation expenses of specialty and non structural assets of your building. It’s called Cost Segregation. Instead of taking all of your available deductions over 39 years, 25 to 45% of your building and improvement cost can usually be written off over 5, 7 and 15 years. Faster depreciation decreases your income tax liability and dramatically improves your cash-flow.
The IRS also allows a “catch up provision” which lets you go back to the date the property was built or acquired, recalculate short life depreciation on the appropriate assets and place all of the deductions into the current tax year. You may even be able to place those deductions in a prior year and create a refund without having to amend your tax return! It’s unlikely that your CPA reads and interprets blueprints. That’s why the IRS recommends fully engineered studies be performed to ensure full compliance with their guidelines.
We will provide you with a no cost, no obligation preliminary analysis based on your exact situation. The value proposition is compelling, the net tax benefits will usually be at least 15 times the cost of the study, often significantly greater. We have completed more than 6,000 similar studies, making millions of dollars available for our clients.
This doesn't just work for the owner of the building. If you are leasing, but paid for your own tenant improvements, you are treated just like an owner and can utilize cost segregation to accelerate the depreciation on those improvements.
What have you got to lose……..It’s your money!