Cost Segregation Services For Grand Junction

Grand Junction property owners who utilize cost segregation studies are enjoying increased tax savings. Cost Segregation is a tax strategy that is used to accelerate tax deductions by increasing the amount of depreciation on commercial and residential investment property, reducing your tax liability and improving cash flow in the current year. Grand Junction

We work with Grand Junction investors and perform in-depth engineering-based cost segregation study to help them take advantage of all the real estate tax incentives available, potentially saving them thousands of dollars in the first year of ownership which can be plowed right back into more investments or other business ventures.

A Look Into Cost Segregation

Cost segregation is where parts of a building are taken out of the standard 27.5 or 39-year depreciation schedule and placed into a 5, 7, or 15 year accelerated depreciation schedule. It is an engineering based analysis that identifies the various items of property that would otherwise be included in the structural building that could more accurately be categorized as personal property and land improvements and would otherwise qualify under a shorter recovery period (life).

The secret is to leverage the construction knowledge to sort the tax knowledge. For instance, certain components of a building, lighting, flooring, air conditioning, or other site improvements, may not be part of the building component, but qualify for accelerated depreciation instead.

Advantages for Property Owners

Here’s how cost segregation benefits a Grand Junction real estate investor:

• Immediate tax benefits: Create significant initial-year deductions that will decrease your current tax bill
• Better cash flow: Less tax outflow gives more resources for the property’s renovation or for acquiring new property
• Accelerated depreciation: 39-year to 5, 7 & 15-year
• Retroactive benefits, use the research on real estate investments you’ve already made to file modified returns.
• Depreciation recapture penalties avoided: legally speeding up the deduction schedule with no impact on the total amount of depreciation deductions.

Who Is Cost Segregation Right For?

Here are the property types and circumstances that tend to make cost segregation studies the most profitable:

• Commercial property owners such as office, retail, industrial, or warehouse buildings
• Multi-family investors: Multifamily housing and rental property
• The most recent purchasers, meaning properties purchased in recent years to maximize tax advantage
• High-income earners: The owners who are in the top tax brackets will reap the largest advantages from the accelerated deductions.
• Real estate professionals who invest and qualify to offset income with passive activity losses.

What the Study Involves

Our cost segregation study for Grand Junction, CO, follows all established engineering and tax industry standards.

• Site inspection: Conduct a comprehensive building tour and create documentation for all of its elements and systems
• Blueprint analysis: An examination of building plans and blueprints if they exist.
• Component Identification: Personal property and land improvements to which accelerated depreciation may apply
• Allocation: Allocation of purchase or construction cost in order to the appropriate classes of depreciable assets
• Tax compliance: Preparation of a detailed report, including supporting documents, to meet the requirements of an IRS audit.

Reasons To Choose Us

We leverage our engineering background and tax expertise in order to bring our Grand Junction clients the best possible value. We hold professional engineer licenses and regularly work with CPAs to keep up with tax code changes.

Every cost segregation study we produce is documented thoroughly to ensure it can withstand a rigorous review by the IRS. Additionally, we offer continuous assistance with your study, and we back up our work with professional indemnity.

How to Begin Your Cost Segregation Study

Stop losing valuable tax write-offs another year. Call our cost segregation experts today to explore whether this approach would be a good fit for your Grand Junction real estate holdings. We offer a no-cost preliminary evaluation that will provide you with an approximate savings estimate and tell you if a full cost segregation study is worth it.

Schedule a consultation with us today. Start saving more on your tax payments now! Let our cost segregation experts guide you on how to make the most of your tax savings. Reach out to our team today