Cost Seg­re­ga­tion

You need to do these 2 things in 2017 to great­ly boost your cash flow and low­er your tax­es if you own com­mer­cial prop­er­ty or rental prop­er­ty. If you are a sales agent, you need to inform your clients of these oppor­tu­ni­ties to help them great­ly improve their cash flow this year, with ease.

Have you had a true cost seg­re­ga­tion report done on your com­mer­cial property?

Cost seg­re­ga­tion is a cash flow improve­ment strat­e­gy that accel­er­ates depre­ci­a­tion deduc­tions to reduce or elim­i­nate Fed­er­al and State income tax­es.  Although not com­mon­ly under­stood or used, cost seg­re­ga­tion can be a valu­able tax strat­e­gy for any tax­pay­er that owns, con­structs, ren­o­vates or acquires real estate.

Cost seg­re­ga­tion stud­ies are an engi­neer­ing-based approach to iden­ti­fy­ing assets with­in a build­ing that can be reclas­si­fied into a much short­er depre­ci­a­tion class than the build­ing itself. Doing so allows for accel­er­at­ed depre­ci­a­tion of those reclas­si­fied assets result­ing in high­er cash flows.

To qual­i­fy, the property’s own­er must be a tax­able enti­ty, the prop­er­ty must either be new con­struc­tion or have been pur­chased or sub­stan­tial­ly ren­o­vat­ed after 1986 and the prop­er­ty must be defined as prop­er­ty for a com­mer­cial invest­ment purpose.