Property owners and tenants don't take full advantage of income tax regulations that may allow them to decrease their tax liabilities.
GSBB's cost segregation specialists use their expertise to maximize tax deductions on portions of new construction, remodels, acquisitions, and older properties where these deductions were never maximized. The deductions are available only through cost segregation studies, a process that uses IRS-approved engineering and accounting techniques to identify assets that can be depreciated more rapidly. The result: accelerated tax deductions that create increased cash flow.
A variety of property types can yield these savings, including:
|
|
Property owners can benefit from a cost segregation study as long as their property was acquired or constructed after 1986. Owners and tenants may even qualify for a 30% to 50% bonus depreciation deduction in the first year.
The following example assumes a $1million commercial construction project. Construction began after 9/11/01 and was completed before December 31, 2004, thus qualifying for the bonus depreciation.
|
Without
Cost Segregation |
With
Cost Segregation |
Totals |
|||||
| Depreciation Period |
39 yrs |
39
yrs |
15
yrs |
7yrs |
5
yrs |
||
| Percentage Classified |
100% |
80% |
10% |
3% |
7% |
||
| Total
Tax Deductions (Year 1) |
$12,821
|
$10,256 |
$5,000 |
$4,287 |
$14,000 |
$33,543 |
|
| Total
Tax Deductions (Years 1 - 5) |
$115,385 |
$92,308 |
$37,680 |
$23,307 |
$65,698 |
$219,263 |
|
To see if a cost segregation study could benefit you or your client, click here.
Download a .pdf version of the form and fax it to our office, click here.
If you have questions about cost segregation, contact Arnold Anisgarten directly at (310) 477-3722 or arnold.anisgarten@gsbbcpa.com to learn more.
