Optimize your property in Louisville by implementing cost segregation.

Louisville property owners are learning how to speed up their real estate returns with cost segregation studies. This tax strategy allows the owners to reclass certain parts of their buildings and accelerate their depreciation, and therefore improve their cash flow. No matter where your property is in Louisville, you may be eligible for substantial tax savings.

The engineering study will carefully analyze your property to locate depreciatable assets that may be placed in 5, 7, or 15-year life classifications rather than the longer 27.5- and 39-year life classifications. In effect, you would be taking more tax breaks early in the useful life of the asset than in subsequent years but would still end up with the same total number of tax breaks at the end.

Understanding How Cost Segregation Works

A cost segregation study segments your property, analyzing individual elements such as carpeting, wiring, and trees, as well as more sophisticated assets like custom machinery. We use our combined background as tax professionals and engineers to scrutinize those components and determine whether they are eligible for accelerated depreciation according to the IRS.

They deliver a complete study that you can provide to your tax preparer to amend prior years returns or take advantage of these benefits for current and future years. This engineering-based process is designed to comply with the Internal Revenue Service requirements for all aspects of depreciation and to achieve the maximum potential benefit in all applicable deductions. The study typically takes from 4-6 weeks to complete and provides you with the documentation needed to substantiate the depreciation claims.

Benefits for Property Owners

Cost segregation allows a Louisville real estate investor to benefit from many things, including:

• Boost immediate cash flow by lowering your tax bill.
• Accelerated depreciation applies to 20% to 40% of the cost of the building and its components
• Opportunity to recover unclaimed depreciation by filing amended tax returns
• Greater return on investment for your real estate business
• There’s no effect on the property’s current market value or on future sales proceeds.
• IRS-compliant documentation and audit protection.

Who Is A Candidate For Cost Segregation?

This tax tool is most effective for particular kinds of property and investments:

• Owners of commercial properties with a valuation exceeding $500,000
• Landlords, apartment complex owners, and other rental property investors
• Business owners who bought or built their establishments
• For property owners who are in a higher tax bracket and are looking for an immediate deduction.
• Investors who plan to own property for a longer time period
• Anyone who constructed, owned or altered any property since 1987

What the Study Involves

Our in-depth cost segregation study includes analysis and supporting materials, such as:

• Professional on-site inspections by qualified engineers
• Reviewed construction drawings, plans, and bills.
• Analysis and reclassification of the various components, one at a time
• Complete written report including calculations
• Inventory of assets with suggested depreciation schedules
• Official paperwork the IRS requires for filing taxes

We first gather property information and construction details, then conduct a site inspection. Afterward, we will photograph and record building components and apply the IRS guidelines to determine asset classification and depreciation life.

What Makes Our Company the Ideal Choice?

With decades of engineering and tax consulting experience our cost segregation study is developed and prepared by professionals and reviewed by qualified engineers with whom we have established an enduring relationship with all tax professionals in Louisville and surrounding areas. Louisville

You’ll get written documentation plus follow-up support with your tax returns. We carry professional liability insurance and walk you through our conclusions. Our trusted process has helped Kentucky property owners save on taxes by claiming allowable depreciation deductions, all while following IRS guidelines.

How To Start Your Cost Segregation Study

It’s easy to take advantage of accelerated depreciation. We’ll simply meet with you and review your building details and other relevant items that may impact your project timeline. We’ll talk through your current situation and provide an estimate of potential tax benefits.

The cost of a cost segregation study is typically recouped in the first year by tax savings alone. Don’t miss another year, call us now to learn how much money you can save with cost segregation on your property. Contact our team today