Grow Your Real Estate Investment Earnings In Spokane

If you own commercial property in Spokane, you might save big on your taxes with a cost segregation study. A cost segregation is essentially an engineering and accounting analysis of your commercial real estate that will allow real estate investors to accelerate their depreciation for tax purposes. Spokane Valley property owners will save significant money with this. Most don’t know this! Spokane

What this requires is shifting a building’s elements from 39-year commercial depreciation to shorter recovery times like 5, 7 or 15-year depreciation schedules. This tax strategy is just one of the many ways Spokane businesses are putting these tax savings back to work.

Understanding the Cost Segregation Process

Cost segregation helps commercial real estate assets qualify for more accelerated depreciation. Rather than depreciating a property as a whole over an extended period of time, certain parts of the building may qualify for accelerated depreciation. Our engineering team reviews each building in order to identify which assets qualify for this treatment.

The current research distinguishes the building itself from other improvements and personal property. This includes specialized lighting fixtures, artwork, landscaping, and some mechanical assets. Shorter depreciation lives are used for the identified personal property and land improvements, resulting in current-year tax benefits within the current law framework.

Advantages for Spokane Residential Landowners

Real estate tax savings generated by cost segregation create several benefits to commercial real estate investments:

• Immediate boost in cash flow with current year tax cost savings
• Accelerated depreciation for eligible building components and site improvements.
• The amended return allows recipients to claim retroactive benefits for properties that were acquired in the interim.
• Enhanced return on investment by leveraging all applicable deductions
• Consider the strategic tax planning possibilities when acquiring additional properties.

Who Would Benefit from Cost Segregation Studies?

Here’s where cost segregation tends to be most helpful, in terms of property types and ownership structure:

• Individuals who have more recently purchased properties within the last few years
• Recently completed and upcoming construction projects
• Major renovation projects, which entail significant construction, upgrades, or additions
• Real estate projects that are worth more than $500,000
• Businesses with profits that need to lower tax liabilities in a lawful way

Opportunities in the Spokane market

Cost segregation is well suited to Spokane’s thriving commercial real estate market. For every downtown office renovation or new retail center being constructed in Spokane Valley, the commercial property owner can capitalize on the depreciation planning potential.

What a Cost Segregation Study Covers

Our analysis follows accepted engineering practice and internal revenue service (IRS) requirements:

• Qualified engineers and tax consultants conduct a detailed site survey.
• Review of the construction documents, such as the architectural drawings and contractors’ bills of lading
• Identifying and categorizing assets based on their depreciation recovery periods
• Detailed reporting that covers every reclassification ruling.
• Audit defense materials crafted for submission to the IRS

Typically our study takes 2-4 weeks, depending on the details and the amount of documentation required. We work with your existing CPA to execute the depreciation plans that we recommend.

Why Choose Us?

Our team consists of engineers who possess a comprehensive knowledge of the tax code. We are also connected to a variety of qualified engineers, tax attorneys, and CPAs to support our cost segregation study clients. All of our reports include supporting documentation for our recommendations and findings.

Our professional liability policy provides peace of mind as we defend all audited studies and maximize benefits in full compliance with regulatory requirements.

How to get your cost segregation study started

Are you looking for ways to save on the taxes you pay on your commercial property in Spokane? We can begin by offering you a free evaluation of your particular case and giving you some rough estimates of the potential benefits, should you choose to hire us to conduct a study at a later time. We consider the specific characteristics of your property as well as the amount you paid for it and your current tax situation to decide if a cost segregation study would be the right move for your investment.

Reach out to us today and schedule a free assessment to see how you can increase returns on your property with accelerated depreciation. This tax break is well worth exploring for your portfolio. Start saving more on tax, then use those savings to invest more in your business. Contact our team today