Can I Benefit From A Cost Segregation Study?
Every business is determined to increase cash flow. The first rule of business is to stay in business and cash flow is imperative to that rule. But, what you may not know is that if you’re not taking advantage of cost segregation, you’re actually diminishing your cash flow.
We’re going to explain to you how your business can easily increase its cash flow by using cost segregation.
Cost segregation is a way for commercial property owners to accelerate their building’s depreciation, saving significantly on federal, state and local taxes. Within the first five years of building ownership, you could save up to $100,000 for every $1 million in building costs.
To maximize cash flow, a building owner needs to have a cost segregation study conducted. At CSSI, we have a team of accountants and analysts who will segregate and accelerate the parts of your building that are deemed as non-structural. We conduct this through an engineering-based study to ensure we’re in compliance with the rules and regulations. After the analysis, your CPA will adjust the depreciation schedule of your building from the conventional 27.5- or 39-year, to a five-, seven-, 15-, 27.5- or 39-year schedule.
Benefits of a cost segregation study
A cost segregation study will reduce your taxable income because of the accelerated depreciation and result in less of your hard-earned money being paid into state, local and federal taxes. Lastly, by reinvesting your tax savings, you’ll experience business growth, which will result in even more cash flow.
At CSSI, our tax experts will help your business generate more cash flow through our cost segregation studies. Contact us today and we can give you an accurate deduction estimate and gladly work with your tax professional.
It’s your money, keep more of it.