Introduction
Cost Segregation Studies can have a big effect on taxes in Hartford for property owners. Cost Segregation Studies enable commercial and residential property owners in Hartford to accelerate the depreciation of their property and significantly increase their cash flow.
The Cost Segregation Process
Cost segregation changes the depreciation period for a building from a 27.5- or 39-year timeframe to one that includes shorter periods. Our engineering team uses a specific method to isolate items for 5-, 7-, and 15-year property classification. We identify these short-term items through a cost segregation study of electrical, plumbing, floor finishes, and specialized assets.
The approach combines architectural drawings, construction records, and a site visit to deliver a comprehensive review. In this process, professional engineers collaborate with tax professionals to prepare a review that complies with IRS requirements and optimizes depreciation for Hartford building owners.
Benefits for Owners
A Cost Segregation Study can yield both immediate and enduring tax savings on real estate.
- Higher cash flow from faster depreciation deductions
- Reduced the tax liability for the current year by 20-40% in many cases
- The capacity to hold off on paying taxes until later years, when the tax brackets might be reduced
- Better investment returns from acquisitions
- Benefits that can be applied to properties that were purchased in previous years
- No need to alter either the current financing structure or business operations.
When Is Cost Segregation Right for You?
In Hartford, cost segregation benefits numerous property types and ownership structures:
- A commercial real estate investor with properties worth over $500K.
- Restaurant and storeowners
- Medical and dental offices
- Warehousing and Manufacturing
- The owners of multi-family residential properties
- Hotel & hospitality
- Owners and managers of self-storage facilities
Most of the savings are realized in properties that have substantial upgrades, retrofits or are specialized systems.
What’s covered in the study
Our full process for a cost segregation study gives you confidence of high precision and compliance:
- Site visit & detailed property evaluation by accredited engineers
- Reviewing the construction docs, plans, invoices.
- A breakdown of components that make up building systems and their improvements
- Photographs verifying each of these categories
- A comprehensive report that conforms to IRS audit defense requirements.
- Coordinate with current tax consultants and accountants
- Continued assistance should any regulatory queries arise
Why Pick Our Firm
You’ll get a full-service study with decades of engineering and tax law knowledge from our team, and we already have working relationships with many of Hartford’s top CPA and tax attorney firms. Our studies have all been upheld under IRS audit because our team adheres to conservative methodologies and provides extensive documentation. Hartford
Our results are guaranteed and we offer full auditing service if there are issues with our results. Every study includes full cost-benefit analysis so that you can get good returns from professional service money.
How to get started
Take advantage of your property’s tax savings now with a cost segregation study performed by our experts. Our Hartford team offers free first-time consultations to assess your property’s savings opportunities and to provide an explanation of the study procedure. Most studies take 30 to 45 days to complete and you are eligible to take the benefit of accelerated depreciation on your property as soon as you complete your study.
Want to lower your tax liability while boosting your cash flow? Reach out to our seasoned pros today and set up a free property evaluation to explore the advantages of cost segregation with your Hartford real estate holdings. Contact our experienced team