How to Maximize Real Estate Tax Savings for New York Property Owners

As a real estate investor in NYC, property taxes in New York are some of the highest nationwide, but cost segregation studies could be one of the ways to reduce your taxes. This is how cost segregation studies can provide property owners with a significant benefit. New York

Cost Segregation Breakdown: How It Works

Cost segregation involves moving certain assets of a building from the standard 39-year recovery period typically used in commercial construction to a shorter recovery period of five, seven or 15 years. This is done instead of depreciating the whole building over the 39 years. Carpet, fixtures and other assets can be depreciated at a faster rate to generate bigger tax benefits in earlier years.

This calls for thorough engineering studies and a complete IRS cost segregation report that will pinpoint specific components of the property so they can be categorized properly. The final output allows New York investors to receive large tax benefits from deductions on their property up front.

Advantages for Property Owners

Cost segregation analysis allows New York commercial real estate owners to unlock a variety of benefits, including:

• A front-loaded depreciation that produces instant tax reductions
• Better cash flow for property improvements or other investments
• Cut taxes paid in the current tax year with no impact on the property’s value
• Retrospective studies accessible for properties acquired in recent times
• Maximized returns by optimizing for tax advantages.

Who Can Use Cost Segregation?

This tax strategy works best for certain property owners and under certain circumstances:

• Commercial real estate properties of a value of $500,000 or greater.
• Properties that are newly built or recently remodeled
• Properties that have special fixtures or machinery
• Owners in higher tax brackets looking for prompt deductions.
• Real estate investment firms are growing their holdings.
• Property owners making major additions or upgrades

Here’s what your New York Cost Segregation Study entails.

In line with IRS requirements, we will do everything possible to help you maximize deductions for your property:

• In-depth site survey, including detailed component inventory and identification.
• An engineering-based approach to cost allocation
• Full documentation for all the reclassifications
• IRS-compliant reporting ready to prepare taxes
• In-depth evaluation of building systems and components.
• Advice on practical steps and planning

Why Should You Choose Us

We have a long history of success, thanks to our highly trained engineering staff and tax specialists. We are very careful to make sure everything conforms with all IRS rules to achieve the best possible tax benefits in every tax depreciation study that we perform for a New York property owner. Our studies have withstood numerous audits and have proven to hold up.

Every cost segregation study we deliver comes with the added assurance of ongoing support and consultation. We collaborate directly with your tax advisors so that the results can be easily incorporated into your comprehensive tax planning strategy.

Steps To Begin Your Cost Segregation Analysis

Are you interested in learning how cost segregation can save you and your commercial property taxes in New York? Our free initial phone consultation is a cost segregation opportunity screening. We’ll discuss what cost segregation can do for you, as well as provide you with an estimate of what your study could provide in tax savings.

Contact us today to set up your free consultation and learn how cost segregation can improve the financial position of your properties. Do not allow significant depreciation deductions to slip through the cracks; act today to maximize the tax advantages on your real estate investments. Contact our team today