Get a Cost Segregation Study to Increase Your ROI on Your Fargo Property Investment

Many Fargo business owners are already harnessing this valuable tax advantage to slash their taxes. Cost segregation provides a legal method to accelerate depreciation on residential and commercial investment properties and in many cases can result in savings of thousands of dollars each year. It is an engineering study that can separate parts of a building that can depreciated quicker than the standard time frame and can help maximize the cash flow of your real estate holdings here in Fargo.

Understanding the Cost Segregation Process

Cost Segregation accelerates the straight-line amortization that normally spans 27.5 to 39 years by moving assets from buildings to asset classes with shorter recovery periods. Our engineers and tax experts study your Fargo properties to determine if any assets are eligible to be depreciated on a 5, 7, or 15-year schedule rather than that of buildings.

By splitting the assets of personal property and improvements from the property itself, you can now take accelerated tax depreciation on things like carpet, electrical, lighting, flooring and so on. These accelerated deductions generate cash flow from tax savings.

Advantages for Fargo Real Estate Owners

A cost segregation study will give you many benefits if you are an investor or a business owner.

• First-year deductions: Take big early deductions through accelerated depreciation.
• Boost cash flow by lowering your current tax burden to free up capital for enhancements to the property or further investment.
• Bonus Depreciation Tax Benefits: Capitalize on the tax provisions that currently offer 100% bonus depreciation on qualified assets.
• Retroactive Applications: You can use cost segregation in connection with properties that have previously been purchased and can make amended income tax returns to recover prior-year taxes.
• Written Professional Documentation. You’ll receive full written reports that support your tax positions and satisfy IRS requirements

Is Cost Segregation Right for You?

This tax strategy will be most beneficial to the following property owners and circumstances:

• Commercial real estate investors looking to acquire Fargo properties, such as office buildings, retail malls, and industrial parks, in the amount of $500,000 or more.
• Multi-family Property Owners are apartment buildings or rental residential properties that have been acquired or renovated recently
• Business owners are typically firms that own their facilities and are looking to claim as much depreciation deduction as possible.
• Real Estate Developers are individuals engaged in new construction and major rehabilitation projects
• Those in higher tax brackets are those who stand to benefit most from accelerated deductions.

What Is Covered in This Study

Our detailed cost segregation analysis uses a thorough approach to ensure both accuracy and compliance with the IRS:

• Property Inspection: A comprehensive field inspection, conducted on site by a team of experienced professionals who understand the nuances of building practices specific to Fargo.
• Document Review: Evaluation of construction contracts, blueprints, and invoices to locate qualifying components
• Component Classification: Classifying building components in systematic depreciation schedule
• Taxes: Exact calculation of depreciation tax shields and tax savings
• Detailed reporting to help support tax classifications and calculations for the tax professional.

Why Choose Us

We merge our engineering background with our tax expertise to provide the best results possible for our Fargo clients. We are careful to abide by IRS requirements in every step and provide you maximum tax benefits with accurate and professional documentation. Fargo

We’ve served North Dakota real estate investors for years and are very familiar with the area’s construction methods, building codes and other relevant factors that can influence cost segregation studies. Plus, we offer certified engineers who work directly with your CPA to ensure your cost segregation study ties into your total tax plan.

Where to Start on Your Cost Segregation Study

The process of beginning your cost segregation experience doesn’t take much time, yet yields high rewards. Our first step is a no-cost assessment of your Fargo property, where we’ll determine how much in savings could be realized for you through accelerated tax depreciation.

Curious about how much you could potentially save with cost segregation? Reach out to our team today and you’ll get a free analysis and find out how this simple technique can change the game with your property taxes. Let’s schedule your free analysis today! Contact our team today