Introduction

In Las Cruces, commercial property owners can reap the rewards of a cost segregation study. Cost segregation is a professional engineering analysis that identifies certain personal property components of real estate assets. Doing so could lead to increased cash flow and lower taxes. Business owners in Las Cruces who are looking to lower their taxes should take the time to properly categorize the components of your commercial property in order to qualify for the appropriate depreciation period allowed by the IRS. This will transform traditional 27.5 or 39-year depreciation schedules into much shorter timelines.

The Process Behind Cost Segregation

Cost segregation is a detailed engineering analysis performed on commercial real estate assets, which breaks components into appropriate asset categories for depreciation by Professional Engineers. They analyze building systems, fixtures, improvements and such items that may have shorter than the standard 39-year life but still qualify as depreciable under the 5, 7 or 15 year property category. Cost separation is done in such a way so as to comply with IRS requirements and allow taxpayers the proper tax advantages for the asset. We have the experience and expertise necessary to accurately identify all possible assets.

Advantages for Property Owners

Las Cruces commercial property investors benefit from several advantages provided by cost segregation studies:

• Instant cash flow boost through quicker depreciation
• This action reduced the current year’s tax liability while having no impact on the proceeds generated from the future sale of the property.
• A stronger return on investment resulting from strategically optimized tax arrangements.
• Certified documentation ensuring IRS compliance
• Look-back studies to catch up on prior years
• Enhanced property appraisal for future real estate deals

When Should You Think About Cost Segregation In Las Cruces?

The following owners will see the greatest benefit from a Cost Segregation study:

• Commercial property purchasers of commercial buildings recently acquired with values in excess of $500,000.
• Companies undergoing large remodeling or tenant improvements
• Investors who own a number of properties
• companies planning to construct new plants or facilities; or, expand existing ones;
• Property owners who owe substantial amounts in taxes might look into tax-reduction strategies through the legal system.

This Is What the Study Encompasses

The cost segregation study will provide a comprehensive analysis with documentation.

• Thorough structural engineering examination of the property.
• A review of the construction documents, blueprints, and contractor invoices
• A componentized method which assigns the appropriate depreciation lives
• Professional report that complies with IRS audit defense standards.
• Computation of tax benefits and cash inflow estimates
• Continuous assistance with filing taxes, including guidance during any subsequent audit.

It normally takes 2-4 weeks as the complexity of your property and the availability of the necessary documentation.

Why Choose Us

We are engineers, but we understand tax and know exactly what is required for the IRS. Our clients’ segregation analyses will stand up under audit. In addition, we have relationships with Las Cruces contractors who understand how to build and construct in ways that maximize the opportunity for segregation. We have delivered millions of dollars in new tax savings to property owners across New Mexico, and to date, we have never lost an audit on a defended segregation study. Las Cruces

How to Get Started

If you would like to explore a cost segregation study and the benefits it may provide for your property, we are happy to offer you a complimentary consultation to review your property and situation. We will review the information we are given at that time and provide you with a detailed assessment of how much potential savings might be available, before proceeding with a full study. For most Las Cruces commercial properties with a basis greater than $500,000, we typically find our study fees will be more than recaptured in the first year alone through taxes saved. Contact us today for an obligation free consultation and find out how a cost segregation study can improve your real estate investment returns. Contact our team