Introduction

If you own commercial real estate in the Des Moines area, you might be missing a great opportunity to benefit from the cost segregation tax benefit. If done properly, this specialized analysis of the various components of your commercial building allows you to take large depreciation deductions for certain personal property assets in the year you place them into service. Cost segregation is an engineering-based methodology which is used to identify and re-allocate portions of your property in Des Moines into lower depreciation periods, resulting in significantly higher cash flow for your property or business in the present while reducing your taxable income by increasing your federal and state income tax deductions. We do a great job at this for commercial real estate investors, small business owners, manufacturing companies, office space owners and apartment complexes in the Des Moines and surrounding areas. Des Moines

Understanding the Mechanisms of Cost Segregation

During the cost segregation process, we identify all assets in your property that qualify for accelerated depreciation. Instead of writing off your entire property as a commercial building over 27.5 or 39 years, certain assets in your property can be depreciated over 5, 7, or 15 years. Our certified professionals analyze building plans and specifications, and perform physical inspections, as needed, to properly identify your accelerated depreciable assets and categorize them according to IRS guidelines.

This means your property depreciation, otherwise considered normal, will be accelerated and allow you to take significant tax write-offs in the first few years of ownership. Everything is legal, IRS-approved and backed with the necessary evidence to substantiate the entire process, classification, and valuation.

Advantages for Property Owners

Cost segregation studies offer substantial economic benefits to commercial real estate investors in Des Moines.

• Immediate tax savings of often $50,000 to $500,000+ in year one
• Improved cash flow due to lower current-year tax liability
• Increased return on investment for newly purchased or developed facilities.
• You may still be eligible for benefits dating back several years for a property you already own.
• Section 179 and bonus depreciation on eligible properties.
• Thorough documentation of assets, in preparation for insurance coverage or disposal.

Who Needs Cost Segregation

Cost segregation analysis can be particularly valuable to the following types of owners and circumstances:

• Commercial buildings with a market value of $500,000 or more
• Recent acquisitions or newly built commercial properties
• Facilities with significant interior build-outs or unique mechanical systems
• Those with high incomes looking for tax relief today
• Real estate investors planning future purchases or renovations
• Property owners who might sell their property within the next several years.

What the Study Covers

Our detailed cost segregation study includes complete recordation and evaluation of your Des Moines commercial building:

• In-depth design and engineering of all building parts and services
• Professional photos of property belongings
• Full asset categorization per Internal Revenue Service depreciation schedules
• A comprehensive written report substantiating all reclassifications is provided
• Electronic asset filing format compatible with most tax software
• Ongoing consultation for future tax planning

The Reasons to Select Our Business

We have decades of specialized experience with cost segregation in Des Moines. We bring engineering and tax expertise and know how to maximize your depreciation while ensuring you stay 100% in compliance with the IRS. Our team has credentials relevant to your project, and stays up to date on tax laws and regulations that may impact commercial real estate.

All studies will pass our quality control review and we will be available to support your audit, should questions come up. And we know the nuances of how Des Moines commercial construction methods and building codes are actually interpreted to ensure the highest possible classification accuracy and defensibility.

How to Get Started

Getting started with Cost Segregation is as simple as a conversation with us about your property. We’ll walk you through the initial considerations and provide a rough calculation of the potential tax benefits. Most studies are profitable in the first year by a wide margin.

Are you interested in saving your property money? Reach out to our cost segregation experts today to set up a consultation and get the most from your Des Moines commercial real estate tax savings using accelerated depreciation. Contact our cost segregation specialists today