There are numerous benefits to those who qualify for Cost Segregation. While no one enjoys paying taxes, it is something that we must do. Fortunately, there are many different tax benefits to take advantage of with Cost Segregation.
Maximize Tax Savings
The first benefit you can take advantage of is to maximize your tax savings simply by adjusting the timing of deductions. You will find that shortening the life of an asset, accelerates the depreciation expense. As a result, tax payments will decrease during the early stages of a property’s life. Instead of overpaying taxes, you can take this new-found money and invest it back into the business.
Retro-Activity
Since being implemented in 1996, it is possible to claim immediate retroactive savings on any property that as been added since 1987. Before 1996, a business would have a 4-year waiting period before they qualified for retroactive savings. However, you can now take the entire amount of the adjustment in the year you complete the Cost Segregation Study. As a result, this gives you the opportunity to act on retroactive Cost Segregation for older properties to increase your tax savings.
An Analysis for our Cost Segregation Services is absolutely free. Simply fill out the form on this page to get started.