Tax Breaks on Real Estate for Lexington Homeowners

Lexington real estate owners are saving big on taxes through cost segregation studies. If you own commercial property in Lexington or Lexington area, and residential properties, a cost segregation study can greatly increase cash flow through accelerated depreciation. No matter if you own commercial or Lexington multi-family properties, a cost segregation study in Lexington can save you thousands of dollars now on your taxes, all while staying fully compliant with all tax laws. Lexington

The Mechanics Behind Cost Segregation

Cost segregation is a tax accounting strategy that allows you to accelerate the rate at which you may depreciate specific assets of your investment property by identifying and reclassifying its shorter-lived components. Rather than depreciating all your assets in Lexington at once over 27.5 (residential) or 39 (nonresidential) years, cost segregation study identifies individual assets that may be depreciated more quickly over five, seven, or 15-year periods.

By carefully analysing construction costings, plans and site inspections, each individual item can then be classified in accordance with the regulations. This allows you to achieve the maximum tax benefit from accelerated depreciation and ensures you have full evidence and backing for the tax man.

Advantages for Real Estate Owners

Lexington Real Estate investors benefit in many ways when cost segregation studies are performed by professionals:

• Immediate improvement of the cash flow with accelerated depreciation deductions
• It has the potential to lower your current-year tax liability while keeping the obligations of a future sale the same.
• Accelerated return through improved depreciation schedules.
• Bonus Depreciation Options for Qualifying Property Components
• Look-back studies for homes bought in prior years

Who Might Consider a Cost Segregation Study

Cost segregation studies provide the best outcome for these types of Lexington property owners:

• Owners of commercial properties worth at least $500,000
• Multi-family real estate owners who wish to take advantage of depreciation.
• Owners of medical and dental practices who made or erected a property.
• Investors in retail real estate, in regards to their tenant improvement allowances
• Building owners of specialized manufacturing facilities.

Property Categories Most in Demand in Lexington

Restaurants, hotels, medical facilities and retail stores have the highest cost segregation savings potential because of these building’s unique internal finishes and systems.

What’s in the Study

Cost segregation for Lexington properties includes these steps:

• A comprehensive on-site inspection of the property from an engineering perspective, where every part of the property is thoroughly examined.
• A breakdown of the estimated cost of each identified building element.
• IRS asset categorization for depreciation
• Full documentation to aid in making all reclassification decisions
• Expert help with filling out your tax returns correctly

Each study is backed by photographic evidence, calculations and legal documentation in case of an audit.

Why Choose Our Company

By combining technical, engineering-related skills along with extensive knowledge of the tax code, we are able to provide top-notch cost segregation services to property owners in Lexington. Also, we have worked with many of the area’s tax experts and can assist with cost segregation on Kentucky specific rules that may be applicable to the real estate depreciation.

The process is guaranteed, every time. Every study comes with full support. Our engineers are certified and up-to-date on current tax law changes to help you fully maximize benefit.

To Get You Started

Get started on your Lexington real estate tax planning with cost segregation analysis now. Begin with a free review today.

Reach out to our cost segregation consultants to arrange your property evaluation and see how much you could save by maximizing tax depreciation. Most studies generate additional cash flow and reduced taxes, recouping their costs in the first year. Contact our cost segregation specialists