Introduction

Property owners in Paterson are starting to reap the benefits of cost segregation studies. By doing this, business and residential owners can write off property faster and save a lot of money. Office buildings, retail and multi-family property in Paterson benefit from doing a cost segregation study. Paterson

There’s never been a better time for property owners in New Jersey to take advantage of available deductions. The new tax law offers great benefits for those who use the appropriate deductions to lower their taxes while adhering to IRS rules. In New Jersey, investors are using these deductions to save on their property tax obligations and are reinvesting those tax savings into buying more properties or into other businesses.

Here is how Cost Segregation works.

Through the cost segregation study, we utilize a detailed engineering analysis to identify and classify building components that qualify for accelerated depreciation (for tax) benefit, so rather than depreciating the entire building on a 27.5/39 year depreciation schedule, specific building components can be accelerated to a 5, 7, or 15-year depreciable life.

Your professional engineers and tax accountants review the drawings for the construction of your property, perform the on-site inspection and classify the assets into the correct categories as defined by the IRS to change the normal depreciation schedule into a powerful tax shield tool.

Advantages for Paterson Homeowners

Property owners both for commercial and residential use in Paterson reap many of the benefits for having professional cost segregation done on their property, including:

• Instant tax savings with the boost of accelerated depreciation deductions
• Increased cash flow available for additional real estate investment
• Lower tax liability for the present and future tax years
• Bonus depreciation is a key option under existing tax law
• Backdated entitlements for properties bought in previous years
• Better ROI calculations to support portfolio management

Who should do cost segregation?

Not all property owners will benefit from a cost segregation study. If you fit in one or more of the following categories, you may want to consider it:

• Any commercial property owner who has a building valued at more than $500,000
• Multi-family investors looking for smart tax strategies
• Developers completing new construction
• Property owners that have done substantial remodeling or additions.
• Investors planning substantial property purchases
• Business owners who operate from their own commercial properties

What’s in the Study

By following established engineering and tax procedures, our detailed cost segregation study results can be fully defended. Our study process covers the following areas:

• Comprehensive assessment and evaluation of the property by skilled and licensed engineers.
• Reviewing construction documents, including blueprints and specifications
• Categorization of assets using the Internal Revenue Service (IRS) depreciation guidelines
• Cost analysis by each identified component
• Preparation of professional reports including any supporting documentation
• Support for integrating your tax return to simplify the filing process

Why Choose Us

Our team is well-equipped with engineering expertise and is highly aware of tax-related issues, to ensure great value for the property owners at Paterson. It is very important for us to maintain high-quality standards and always provide support and assistance.

In fact, a cost segregation study will generate all the necessary documentation to defend the position if audited by the IRS and also provides the maximum tax advantages possible. Also, our engineers and accountants are current with the latest tax legislation and engineering procedures to deliver the best results for the individual client.

Getting Started

Have questions about cost segregation? Reach out to our team to book a free consultation to determine how this powerful tax strategy will fit into your Paterson commercial property investment portfolio. Our experts will review your property and provide you with a report outlining estimated tax savings and an enhanced cash flow schedule. Contact our team today

Don’t wait for the next year to come and go. The best way to optimize your real estate tax position and stay 100% compliant with federal law is to have professional cost segregation studies done.