Maximizing Tax Benefits for Commercial Real Estate Owners in Madison

Madison commercial building owners are finding that cost segregation studies are a major way to reduce their tax bills. This study, which uses an engineering approach, often leads to a faster write-off time, which can save thousands of dollars in tax liability per year. Since Madison has such a strong commercial business climate and an ever-growing number of commercial building owners, a cost segregation study is especially useful.

Understanding the mechanics of cost segregation

Cost segregation takes the standard 39-year depreciation for buildings, and reassigns it for faster timelines, generally 5, 7, or 15-year depreciation periods. This means you are not depreciating your building as one unit of real estate. Instead, we are finding components to depreciate in shorter periods. It involves using architecture and engineering principles and tax knowledge to separate and reclassify elements of the building in a legal manner.

Our Professional Engineers will review every item on your commercial property, including electrical systems and specialized equipment. We determine what can currently be written off at an accelerated rate. That means you’ll get significant front-loaded tax deductions. Which improves your cash flow immediately.

Property Owners in Madison

Cost segregation can produce a tangible tax advantage for commercial property, delivering significant tax benefits to property owners. Business owners in Madison, for example, usually see:

• Tax write-offs that can be claimed immediately of $50,000 to $500,000 or even more.
• Accelerated depreciation schedules leading to increased cash flow
• Increased ROI for commercial real estate portfolios
• Benefits that apply retroactively for those who acquired property recently
• Decreased taxable income with no effect on operations costs

What Type of Businesses Can Use Cost Segregation in Madison?

Cost segregation can really pay off for these types of properties and situations:

• Facility owners, restauranteurs, and retail owners
• Hospitals, medical office buildings, and other specialized health facilities
• Hotels, apartment buildings, and other hospitality businesses
• Recently built or remodeled business premises
• Property prices of $750,000 and above
• Companies with positive taxable income wanting to claim deductions sooner

The Cost Segregation Study will include:

We go through an in-depth process to optimize your tax benefits and to meet all IRS requirements. Every cost segregation study includes:

• Comprehensive on-site evaluation conducted by certified engineers and tax experts
• Full review of the construction documents, plans, and bills
• Breaking down building systems and equipment on an individual basis
• Drafting comprehensive engineering reports for all proposed reclassifications
• Get tax forms and schedules ready for immediate filing now.
• Continuous assistance to address any future IRS requests or potential audits.

What Sets Our Madison Cost Segregation Apart

By uniting the best of both disciplines, engineering knowledge with tax expertise, we are able to produce studies that are not only comprehensive in scope but can also stand up to scrutiny. Moreover, we maintain strong connections with local Madison contractors and other industry professionals within the construction business that can help us to better understand local building practices and pricing. And, lastly, our services include QA reviews and carry professional liability insurance to protect our clients from all angles.

All inspection work is performed by professional engineers and all compliance work is done by certified tax experts, thereby maximizing the value for our clients in Madison with regards to depreciation and minimizing the risk of audit.

How to Start the Cost Segregation Study Process

Contact us today for a free consultation and we can help determine whether your properties are a fit for tax benefits, and estimate the value of the analysis. Our Madison cost segregation specialists will walk you through our commercial real estate cost segregation services. The average time to complete an analysis is 60 to 90 days.

Find out more about the hidden tax savings in your property, call us at cost segregation experts now to set up your complimentary consultation and to discover how accelerated depreciation can benefit your commercial real estate investments in Madison.