Introduction
For Portland property owners, cost segregation can be a very real path to maximizing tax savings. It is a tax planning service that allows owners to maximize cost segregation, accelerating their depreciation and cutting the taxes they owe on a federal level. Commercial real estate investors, developers, business owners and others in Portland can take advantage of this process.
The Cost Segregation Process
Cost segregation can help you accelerate depreciation on your Portland commercial property by shifting from 39-year depreciation to shorter life depreciation periods. For example, the cost segregation procedure allows you to move portions of your Portland commercial building from 39-year real property to 5-year, 7-year or 15-year property, rather than depreciating your entire building over 39 years. This means that components of your building, such as plumbing and electrical, carpeting, interior walls and other items can be depreciated over much shorter periods as the components of your building may no longer be treated as components of the overall building but separate pieces of property.
Advantages of Property Owners
For Portland property investors, cost segregation studies provide both instant and continuing benefits.
- The effect of accelerated depreciation is to generate significant deductions in the early years.
- Higher cash flow because of lower taxes
- The possibility to use this money to invest in extra Portland homes or other business ventures.
- Higher returns through careful tax planning
- Back benefits for property purchased recently
- Higher property basis on future sales
Who Should Consider Cost Segregation?
Here are the types of owners and situations in Portland, OR for whom cost segregation studies are most useful:
- Commercial real estate investors holding assets exceeding $500k
- Business owners who recently bought or built Portland buildings
- Property owners who want to do major renovation work
- Investors looking for quick tax breaks and improved cash flow
- Firms owing substantial yearly income tax
- Multiple Portland property managers
What the study covers
You can follow these steps to perform a full cost segregation study on your commercial property in Portland and ensure it is compliant with the IRS:
- An assessment visit to the property is made by the chartered engineers and tax practitioners.
- Review in-depth construction documents, plans, and invoices
- Evaluating each component individually, according to established IRS rules
- Revised building element: engineering cost estimates
- Full records to justify every depreciation adjustment made
- Final Report with Specific Findings and Tax Savings Estimates
Why Choose Us
Our team’s blend of engineering and tax expertise means we can provide the best cost segregation analysis of any Portland cost segregation firm. We follow all IRS rules while still delivering you a strong cost segregation deduction. Our professionals know Portland commercial buildings and how they are constructed and will provide accurate cost segregation classification to survive any IRS audit. Every study comes with the support documents you may need and with the continuing guidance and assistance you deserve to make the most of your real estate tax savings. Portland
Getting Started
Get significant tax savings in Portland through cost segregation. We will be happy to evaluate your property and give you an estimate of potential tax benefit savings. You can schedule a free call with one of our tax specialists to talk about the potential cost segregation benefits and tax savings from your property in Portland. Contact our tax specialists today