Naperville homeowners are experiencing the benefits of cost segregation by utilizing cost segregation. Cost segregation accelerates the write-off of a commercial or residential building’s value and thus can significantly increase cash flow and reduce tax for the buildings.

Here is how cost segregation works:

Cost segregation is an accounting procedure that involves accelerating the depreciation rate of property. Instead of an entire commercial real estate building being depreciated over 39 years, an engineering-based cost segregation study identifies certain parts of the real estate, which are depreciated under 5, 7, or 15 years.

This includes a thorough review of building costs, plans, and specifications. Licensed professionals evaluate the electrical, plumbing, flooring, and specialized equipment to provide maximum depreciation for Naperville properties.

Advantages for Naperville Real Estate Owners

In Naperville, there are several benefits to having a cost segregation study conducted for any investor interested in real estate:

• Immediate tax reduction via the use of accelerated depreciation methods.
• Lower tax liabilities in the current year will result in better cash flow
• Higher returns on commercial properties
• Ability to use tax savings to invest in more real estate projects
• Meeting IRS rules and having protection against an audit

Who Needs Cost Segregation

This tax approach works well in the following types of circumstances and for the following types of property owners:

• commercial property holders with building valuations over $500,000
• Newly built or remodeled homes in Naperville
• Rental property owners looking to maximize deductions
• Real Estate Developers Looking To Make Future Acquisitions
• Taxpayers in higher tax brackets who own property

What the Study Covers

Cost segregation studies are multi-phase projects that require a high degree of diligence and analysis to guarantee the IRS will approve them:

• Onsite site inspection by a team of qualified engineers
• Reviewing construction documents, invoices, and drawings
• Assets categorized based on federal tax guidelines
• In-depth engineering analysis and supporting reports
• Figuring out the tax benefits for the first year, as well as the projected savings in the years to follow

Why Choose Us

Our team has both a background in engineering, and in tax; therefore, we provide our Naperville clients with the best possible outcome. In addition, we maintain strict quality standards, provide full documentation, and offer audit support to protect your investment.

A cost segregation study involves in-depth engineering analysis and professional communication and support to achieve tax benefits for your properties without running afoul of the IRS.

Getting Started

Are you interested in learning how cost segregation can help you make the most out of your Naperville properties? Contact us today for a complimentary consultation and we’ll look over your particular circumstances and give you an estimate of how much you could save on taxes.

Contact to to have our experts schedule your property assessment to uncover the extensive tax savings that can be achieved with a properly structured cost segregation study.