Business & Cash Flow

Maximize Your Business’s Cash Flow with Cost Segregation Services

The first rule of business is to stay in business, and businesses need cash to operate. Every successful business keeps a close eye on cash flow for this reason. There are many tax-saving advantages for those who own or have improved commercial properties through tax law. If you own, lease or have income producing commercial property and you are not taking advantage of all that the U.S. Tax Code has to offer, you are actually reducing cash flow.

Let’s look at how your business can easily increase its cash flow by using the cost segregation method of depreciating your building.

How Cost Segregation Benefits Commercial Property Owners

Cost segregation is a way for commercial property owners to accelerate their building’s depreciation for significant savings on income taxes. Within the first five years of building ownership, an owner can save up to $100,000 for every $1 million in building costs. To maximize cash flow, an owner or lessee who has paid for improvements can have a cost segregation study performed.

At CSSI®, we perform an engineering-based study to ensure you comply with U.S. Tax Code rules and regulations. Our team of professionals will segregate parts of your building that are deemed non-structural. Non-structural items include:

  • Carpeting
  • Flooring
  • Cabinets
  • Specialty lighting
  • Electrical
  • And more

These and other non-structural items are placed in accelerated tax lives. After the analysis, your CPA will adjust your depreciation schedule from the conventional 27.5- and 39-year schedule to a 5-, 7-, 15-, and 27.5-/39-year schedule.

A cost segregation study reduces your taxable income and results in lower taxes paid. You can use this cash surplus to reinvest in your business or pay down debt is a great way of maximizing the time value of money.

At CSSI®, our tax experts will help your business generate more cash flow through an engineering-based study. In some cases, the calculations from our study can be necessary to realize benefits from the 2014 Repair Regulations and the 2017 Tax Cuts and Jobs Act (TCJA). Contact us today, and we can provide you with a no-cost preliminary analysis, and facilitate a discussion with you and your CPA or tax professional.

 It’s your money, keep more of it.