You might be leaving money on the table when it comes to taxes. Have you ever heard of the "Cost Segregation Depreciation Method" - if you have a large commercial property there is no doubt your attorneys, CPA, and/or your CFO have heard of this, but did you know that you might be able to save a good bit of money if you have a small commercial property of only $500,000 in value?
Why not look into this and determine if you have placed on the various components of your commercial property into the correct asset category to maximize depreciation? You see, by applying the Cost Segregation Depreciation Method which utilizes an on-site engineering-based report that takes into consideration the land, property, renovations, and improvements - you can get them into the most apropos tax categories for increased accelerated depreciation.
Consider this a way to defer your taxes and decrease your current taxable income. This concept is somewhat similar to what you might do when funding an IRA. Now then, you will not be able to do this yourself, because you will need some help, as things can get complicated quickly, but luckily there are firms which can assist your CPA in setting up the best play for your situation. The IRS requires that you satisfy 8-points of contention in the documented reports to qualify.
Therefore you will most likely be best served by an engineering based cost segregation study, and you'll need an on-site engineering firm to review your commercial property's improvements, renovations, and buildings. Then you can put these components into short timeline depreciation tables, where it's allowed by the tax code.
There was once a Supreme Court Justice named Learned Hand who reminded all Americans that it's their responsibility to pay the least amount of taxes and to do what's in their best interest, as allowed by law, and that no one should pay more than their fair share of taxes, rich or poor. He's right about that.
Now then, you are probably wondering how you might go about setting this all up right? Well, first ask your CPA if he or she is aware of cost segregation accelerated depreciation methods, if they are not aware, don't be too alarmed, not everyone is, after all consider the mountains of tax codes there are, it's a maze of epic proportions. Next, try to find a firm that can do a comprehensive engineering survey of your property with blueprints included. This insures you have documentation needed in case the IRS audits you.
There are several firms which do cost segregation reports, but you are going to better off if you use one which follows the IRS recommendations and proper BMPs. One such company I found on Google is CSSI or Cost Segregation Services. Why not have your CFO or CPA call them first to ask them the tough questions.
You might find yourself saving 10s of thousands of dollars in the "catch up" years on each property. Don't pay more than your fair share in taxes, follow the law, and take the depreciation you deserve - thus, improving your cash flow, and reducing your company's tax burden. Indeed, I hope you will please consider all this.
Why not look into this and determine if you have placed on the various components of your commercial property into the correct asset category to maximize depreciation? You see, by applying the Cost Segregation Depreciation Method which utilizes an on-site engineering-based report that takes into consideration the land, property, renovations, and improvements - you can get them into the most apropos tax categories for increased accelerated depreciation.
Consider this a way to defer your taxes and decrease your current taxable income. This concept is somewhat similar to what you might do when funding an IRA. Now then, you will not be able to do this yourself, because you will need some help, as things can get complicated quickly, but luckily there are firms which can assist your CPA in setting up the best play for your situation. The IRS requires that you satisfy 8-points of contention in the documented reports to qualify.
Therefore you will most likely be best served by an engineering based cost segregation study, and you'll need an on-site engineering firm to review your commercial property's improvements, renovations, and buildings. Then you can put these components into short timeline depreciation tables, where it's allowed by the tax code.
There was once a Supreme Court Justice named Learned Hand who reminded all Americans that it's their responsibility to pay the least amount of taxes and to do what's in their best interest, as allowed by law, and that no one should pay more than their fair share of taxes, rich or poor. He's right about that.
Now then, you are probably wondering how you might go about setting this all up right? Well, first ask your CPA if he or she is aware of cost segregation accelerated depreciation methods, if they are not aware, don't be too alarmed, not everyone is, after all consider the mountains of tax codes there are, it's a maze of epic proportions. Next, try to find a firm that can do a comprehensive engineering survey of your property with blueprints included. This insures you have documentation needed in case the IRS audits you.
There are several firms which do cost segregation reports, but you are going to better off if you use one which follows the IRS recommendations and proper BMPs. One such company I found on Google is CSSI or Cost Segregation Services. Why not have your CFO or CPA call them first to ask them the tough questions.
You might find yourself saving 10s of thousands of dollars in the "catch up" years on each property. Don't pay more than your fair share in taxes, follow the law, and take the depreciation you deserve - thus, improving your cash flow, and reducing your company's tax burden. Indeed, I hope you will please consider all this.
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