Introduction

Business owners in Fort Wayne are reaping large benefits from cost segregation studies. This tax scheme is designed for businesses and owners who are looking to depreciate specific parts of the building faster in order to save on tax now.

Cost segregation helps you accelerate your property’s depreciation by separating assets from your property’s value. When you have a property in Fort Wayne, you typically can take your tax depreciation deductions over 27.5 or 39 years on all elements. Cost segregation changes that equation by enabling you to accelerate tax write-offs by moving certain building components into the 5, 7, or 15-year depreciation classes.

Explaining the Mechanics of a Cost Segregation Study

A Fort Wayne cost segregation study involves an in-depth examination of your building that determines which items on the property are eligible for accelerated depreciation. An engineer studies your property’s construction plans, surveys the site and follows IRS rules to categorize which elements are considered personal property rather than real property. The engineer then prepares a report that will support your accelerated depreciation.

This analysis involves the identification of components including specific electrical installations, fixtures, landscaping and tenant improvements. Because these assets are generally assigned to more rapid classes of life than the building, they can result in immediate tax benefits by creating current year depreciation deductions, which substantially reduces your current year tax obligations.

Advantages for Property Owners

For Fort Wayne property owners, a cost segregation study offers a range of benefits:

• Improve cash flow immediately by paying less in taxes
• Accelerated depreciation for specific building elements
• Retroactive benefits for a new purchase
• Higher return for real estate investments
• documentation to support depreciation for IRS purposes
• Opportunity for significant first year tax savings

Eligibility for Cost Segregation

However, this is likely the best strategy for certain Fort Wayne property owners and scenarios:

• Commercial building owners who are property that is worth more than 500,000.
• Those who have recently bought properties within the last few years
• Investors looking to undertake significant upgrades or renovations
• Property owners in upper tax tiers wanting quick assistance
• Real estate agents managing a number of rental properties
• entrepreneurs who built or bought custom facilities

The Study Involves

We use our cost segregation study process to ensure the highest level of savings for your Fort Wayne building:

• In-depth engineering design of building components and systems
• A review of construction documents, blueprints, and invoices submitted by the contractor
• Conduct an on-site audit to select qualifying items of personal property
• The application of current Internal Revenue Service regulations and tax court decisions.
• Preparation of a comprehensive cost segregation analysis with related supporting documentation
• Work with your tax advisor for a smooth rollout

Why Choose Us

Fort Wayne property owners trust our team of professionals for their cost segregation projects. Our staff of engineers and CPA’s have years of experience conducting cost segregation studies on a variety of property types. We maintain current IRS certification as well as an intimate understanding of the rapidly evolving landscape of tax laws so the studies we create will be not only compliant but defensible under audit.

Each study is documented with detailed asset categorizations that will assist the taxpayer in their future year annual filings and is accompanied by ongoing support for future filings. Our proven approach has served thousands of real estate investors and property owners in reducing their real estate tax liabilities across America.

Getting Started

Are you looking into cost segregation for your Fort Wayne real estate? Get in touch with us today to arrange a free consultation. We’ll analyze your property to identify possible tax benefits and describe how cost segregation could enhance your investment performance.

It all begins with the assessment and analysis of your property. Most studies take 4-6 weeks. The sooner you can take these measures, the sooner you can begin to save on your taxes for your Fort Wayne real estate investments.