Intro
Appleton property owners can find substantial tax breaks by conducting cost segregation studies. The tax savings from cost segregation are based on the acceleration of depreciation deductions for commercial and residential property owners to maximize the cash flow. For the Appleton investor, cost segregation analysis is the key to making his or her real estate investment as lucrative as possible.
Understanding the Cost Segregation Process
Cost segregation accelerates the depreciation process. When depreciating a commercial property over 39 years you don’t necessarily have to depreciate everything as a nonresidential real property. Instead, it is important to identify components of the building that fall under the depreciation category of personal property and land improvements and are eligible for faster 5,7 and 15-year life depreciation. Through an engineering analysis of the building, you can identify components of the building to determine its appropriate IRS depreciation categories.
Benefits for Landlords
Appleton property owners save a ton of money when they perform cost segregation studies because these investigations allow for accelerated depreciation which results in substantial tax savings that enhance cash flow and allow you to invest in more properties or improvements in your property.
- Gain immediate tax benefits from accelerated depreciation deductions.
- Higher cash flow to enable further investment
- You can recapture lost depreciation from previous years.
- Increased return on investment from real estate portfolio investments
- Lowered taxable income but didn’t alter what the property is actually doing.
Who Should Opt for Cost Segregation?
Property owners in Appleton who own many different types of real estate can benefit from a cost segregation analysis. The studies make the most sense when the property has significant improvement or acquisition costs, which would allow the analysis to save owners enough on taxes to more than offset the cost of the study itself.
- Commercial real estate owners with structures above $500,000
- Investors in retail and office buildings
- Owners of industrial and manufacturing buildings
- Owners of apartments and residential rental properties
- Hospitality and restaurant property buyers
- Health care and other professional services building owners
Here’s What the Appleton Cost Segregation Study Includes
Our detailed cost segregation study uses proven methods approved by the IRS and is designed to produce precise results and protect your audit status. We bring a team with both engineering and tax backgrounds to provide a quality study resulting in maximum depreciation benefits for your business.
- In-depth property inspection and documentation
- Cost allocation analysis based on engineering principles
- Identifying and Categorizing Personal Property
- Separating the land improvement component
- Preparation of a depreciation schedule in compliance with IRS regulations
- Professional report accompanied by supporting documents
Why Should You Hire Us
Because our group is comprised of certified engineers with tax knowledge and experience, we offer the best cost segregation study services available to the Appleton clientele. Our studies meet our rigid quality standards and include audit support. Countless property owners have used us to optimize real estate tax benefits while ensuring tax code compliance with the IRS.
To get started
To start taking advantage of cost segregation tax benefits, you can contact us for an initial consultation to review the opportunities on your property, where one of our team members will look into some general information about your Appleton property and discuss what your benefits may be. Would you like to see the potential for savings on your property’s property taxes? Contact us at today and schedule a complimentary consultation about a cost segregation study for your property.