Introduction
Property owners in Toledo are finding that cost segregation studies can provide huge tax savings. A cost segregation study allows real estate investment and commercial property owners in Toledo, including and to take bigger deductions faster.
Understanding the Cost Segregation Process
Cost Segregation is the process of separating the purchase price of a building into its component parts. This allows the components to be depreciated separately. For example, if you are buying a commercial building for $1,000,000, you would depreciate the building over 39 years. However, some components in that commercial building could be depreciated faster at either 5, 7, or 15 years, so you need an engineering analysis and documentation to support your tax return.
Advantages for Property Owners
Toledo investors who employ cost segregation techniques frequently observe instant bottom-line gains; the accelerated depreciation allows for significant cash-flow benefits to be realized and deployed as a source for further commercial expansion or reinvestment in more real estate.
- More cash flow because there’s a lower tax liability
- Higher return on investment for real estate portfolios
- Greater financial leverage for business growth
- Benefits applied retroactively to recently acquired real estate
- Large first-year deductions
Who Should Consider Cost Segregation?
While tax benefits for real estate have been on the minds of investors for a long time, a more efficient strategy for maximizing those rewards may be a cost segregation study, especially for certain categories of owners and assets. Find out if your Toledo property may qualify.
- Commercial real estate investors owning at least 500K
- Hospitals, eateries, and stores
- Owners of manufacturing and industrial properties
- The recent real estate buyers, who needed the benefit immediately for tax purposes
- Companies that intend to embark on major refurbishments or upgrades
What the study entails
Our complete cost segregation study consists of several distinct steps of analysis and reporting. We examine the property meticulously in order to optimize tax savings in full compliance with IRS regulations for Toledo property owners.
- Site inspection and component inspection
- Analyzing the engineering of buildings and building systems
- Cost allocation under the current income tax law.
- Full tax documentation set
- A professional report that is appropriate for audit defense.
Why Choose Us?
Our experienced staff of engineers and tax professionals provides exceptional cost segregation services to clients in Toledo. We have established relationships with area professionals and understand local construction practices to ensure an accurate tax assessment to realize maximum tax savings. Each cost segregation study that we provide goes through strict quality control procedures and offers audit support.
Getting Started
Getting started with your cost segregation study is easy and pays off big. Get a free consultation to see if you qualify for extra deductions on your Toledo property today. Talk to a member of our cost segregation team and find out how cost segregation can boost your bottom line, and how it can help set your property apart from the competition.