Get the best returns for your Chicago real estate investment

Owners of real estate in Chicago can reduce their tax burden through cost segregation studies. This strategy can potentially put thousands of dollars back in your pocket annually. This is true whether you own commercial buildings in the Loop or residential properties throughout the Windy City.

The Process of Cost Segregation

The IRS allows property owners to conduct a cost segregation, which accelerates a building’s depreciation by assigning certain property to shorter lives. A cost segregation study recharacterizes various building components from a 27.5 or 39-year life into shorter, 5-, 7- and 15-year lives. To qualify, a cost segregation study looks at the individual components of a property and separates them into shorter lives.

A qualified study will examine your construction documents, conduct a physical site visit, utilize its expertise and training in an effort to generate additional benefits from your accelerated depreciation and is a legitimate tax strategy, already used successfully by thousands of property owners around the country.

Top Pros for Property Owners in Chicago

There are both immediate and future gains that can be realized from using a cost segregation study for your real estate taxes.

• Accelerated depreciation, you can claim larger deductions during the first few years you hold the property
• Enhance your cash flow substantially by lowering your current tax bill.
• Retroactive benefits. Study the existing homes that you have previously purchased.
• Investment flexibility: Access funds to finance property purchases
• Audit support: The documentation that is prepared meets IRS compliance regulations.

The usual ROI on a cost segregation study falls between 300% and 1000%, making it one of the strongest tax saving methods available to real estate investors.

Who Should Use Cost Segregation

This tax strategy works best for particular groups of property owners:

• Commercial property owners with properties valued over $500,000
• People that have recently bought, developed, or refurbished a property
• Real estate owners who have enough taxable income available to be able to use any extra write-offs they could qualify for.
• Real estate agents aiming to maximize their investment portfolio
• Businesses that own their facilities

Even properties that you bought many years ago can enjoy cost segregation studies; you just need to file your amended tax returns to take advantage of IRS retroactivity rules.

What the Study Encompasses

The following represents the typical procedure for a thorough cost segregation study designed to extract the greatest possible tax savings for you:

• Property analysis: In-depth construction and specifications report
• Site Inspection: A comprehensive physical assessment of a property’s various structures and systems.
• Asset classifications are professional grouping according to IRS standards.
• Report preparation: Thorough records that back up reclassification
• Tax Integration is easy integration with your tax professional

It normally takes 4-6 weeks and it depends on the complexity of the property and whether you can get the necessary documents fast.

Why Choose Us?

We bring a wealth of practical experience in Chicago real estate markets and cost segregation. We know the local construction and building codes, as well as the current state of the market, which affects the cost basis of the property and the valuation of depreciation components. Our engineers and tax professionals work together to help you take full advantage of cost segregation opportunities while maintaining IRS compliant reporting. Chicago

We offer warranty backing and post-study audit support so you can be certain you’re making a good investment. Our analysis services have produced a track record of outstanding outcomes in the greater Chicagoland area.

Initiate your Cost Segregation process today.

Leverage this tax advantage for better property investing. The initial consultation to see if the property can be cost segregated, and what the potential savings will be, is free of charge to you. You receive our opinion and projected savings before incurring any study costs.

Call our team now to set up your free property assessment and find out how cost segregation can benefit you. Contact our team today