What is Cost Segregation?
Cost Segregation is a strategic tax savings'
tool that allows companies and individuals
Who have constructed, purchased, expanded,
or remodeled real estate and tenant improvements
to increase their cash flow by accelerating
depreciation deductions and deferring their
federal and state income taxes.
What does this mean?
Cost Segregation is a legally recognized IRS
Technique. The study allows for qualifying
items of land improvements and personal property
to be "segregated from the building structure"
for tax purposes.
The segregated improvements and personal property
are identified by useful lives and depreciated
over 5, 7 or 15 years as personal property.
This allows for accelerated depreciation of
certain assets instead of using the standard
straight line depreciation of 27.5 years for
residential or 39 years for commercial for
buildings. Cost Segregation allows the owner
the benefit of deferred taxes and helps generate
positive cash flow!
Call your CSS representative for a free estimate
of savings and consultative session.
