South Bend owners are masters at enhancing the performance of the assets they hold. One of the most popular ways to do this is to perform a cost segregation study. The tax incentives available to real estate owners in South Bend have a significant impact on the cash flow of commercial properties.

What Is Cost Segregation

The IRS allows property owners to utilize something called a cost segregation study for property taxes purposes, which involves identifying assets that can exist within a commercial building and reallocating them to a shorter life span for accelerated cost deductions. Typically, cost segregation will allow you to claim a five to 15-year asset all at one time as opposed to a building being depreciated over a period of 27.5 or 39 years.

A professional engineer and tax advisor analyze the property to identify eligible improvements, for example, new carpeting, lighting, landscaping or special plant. These can be written off faster than the building itself, resulting in immediate tax savings.

Benefits of Homeownership in South Bend

South Bend real estate investors can utilize the benefits of the following through cost segregation:

• Tax benefits are now accessible sooner through accelerated depreciation.
• Better cash flow to finance reinvestment opportunities
• The entitlements for houses bought in the past are retroactively applicable.
• Enhanced calculations of return on investment
• Lowered taxable income with its business unchanged.
• The necessary documentation supporting all depreciation claims.

Who Would Benefit From Cost Segregation?

Property owners in South Bend who are most likely to benefit from these studies include the following:

• Investors holding commercial real estate assets exceeding $500,000.
• Anyone who recently renovated a building.
• For investors planning a major renovation or for tenant improvements
• owners of rental property who are currently in a high-income tax bracket and who would like the benefit of more rapid deductions
• Real estate professionals managing multiple investment properties
• Business owners whose operating plants are their own

Which Components Are Part of A Cost Segregation Study?

Here’s an overview of our detailed, multi-step cost segregation process:

• Initial property evaluation and pre-qualification review.
• An engineering review, in depth, of all building systems
• Asset Identification and Classification according to the IRS
• Compiling the comprehensive depreciation schedule and producing the professional estimates.
• Full documentation for each related reclassification.
• Help with getting your taxes ready and ongoing help afterward

Documentation accompanying these studies, including engineering reports, photographs, and schedules of assets, support the accelerated depreciation deductions taken for these properties.

Why Choose Our Services?

With a combination of engineering expertise and tax knowledge, and backed by the resources to deliver superior property tax reduction services to South Bend property owners, we follow a strict quality standards program and we guarantee every study we complete, including audit defense, if challenged.

We understand local requirements for construction and building codes that are used throughout Indiana and Northern Indiana so we can determine the true status of your assets. We work with you and your trusted advisors to get you the most IRS tax benefits available to you.

Get Started With Cost Segregation

Property owners interested in learning if they are ideal candidates for cost segregation can request a complimentary first meeting. During this meeting, we will review information about their property and when it was acquired, as well as a profile of their present tax situation.

Typically, you will receive this report four to six weeks after you initiate the study. The vast majority of studies yield savings that are in excess of the cost of the study. Good thing too for the South Bend investor.

To learn more, feel free to contact us. Give us a call today and we will set up your consultation with a qualified tax professional, who will then show you how cost segregation can enhance the yield on your investments.