How We Help Tax Professionals
At CSSI, we understand the vital role you play with your clients. Our studies exist to allow business owners to obtain the true value out of their property, while at the same time, remaining in compliance of the tax code. As a tax professional, we partner with you to perform a cost segregation study so you can help your clients reap the benefits of tax savings.
By helping your client change their method of accounting from straight-line depreciation to accelerated depreciation, you will help your clients obtain ownership of their business’ assets sooner and help them get money back in their pocket. With this method, we re-classify components and improvements on your clients’ commercial building. This property can either be real or personal property.
Traditionally, business owners won’t stay in their current office building for 30 years or more, so why put their assets on a 30-year depreciation schedule? We get them ownership and help them get their money back sooner by putting them on a 5, 7, or 15-year depreciation schedule.
To help ease your mind about what you may have heard about a cost segregation study, here are some common misconceptions about the analysis:
- Cost segregation studies are very expensive ($10,000, $15,000, $20,000+).
- Cost segregation studies do not identify very much that can be segregated.
- You can only do a cost segregation study in the first year of ownership.
- You can only do a cost segregation study on newly constructed buildings where you have all the receipts.
- You have to amend prior year’s returns (which is a bad idea).
- You cannot do a cost segregation study on buildings less than $1,000,000.
- Because buildings are typically owned as rental real estate (a passive enterprise), an owner cannot use a depreciation “loss” from their building to reduce taxes in ordinary income.
The fact is that cost segregation studies are not any of those things mentioned above. The analysis will reap benefits for not only your client, but for you too. It’s your clients’ hard-earned money; shouldn’t they be able to keep it? Contact our professionals today to discuss how we can help get your clients money back where it belongs and help you get the hero status you deserve.