Uncovering Value & Minimizing Taxes on Your Property

As a business owner Washington State, or anywhere in the United States, finding ways to minimize your taxes is crucial. One effective strategy is to unlock the hidden value within the buildings you own. That’s where cost segregation comes in.

What is a Cost Segregation Study?

A cost segregation study is a comprehensive analysis that identifies portions of a building that can be reclassified as personal property for tax reporting purposes. By separating assets into different categories like personal property, land improvements, building components, and land, a cost segregation study allows you to take advantage of shorter depreciation periods for certain assets.

How Does It Benefit You?

The key advantage of cost segregation is that it enables you to accelerate depreciation deductions, which translates into immediate tax savings and improved cash flow. By classifying specific building components as personal property or land improvements, you can depreciate them over shorter periods (e.g., five, seven, or 15 years) rather than the standard 27.5 or 39 years for the building itself. Additionally, recent tax changes now allow for 100% bonus depreciation deductions for property with a useful life of less than 20 years, further enhancing your tax savings.

The Benefits of Cost Segregation Include:

  1. Front-loaded Depreciation Deductions: Improve your cash flow by maximizing depreciation deductions, especially during the initial years of building construction or improvements.
  2. Write-offs of Building Components: Identify and deduct the costs of specific building components that require replacement, easing the write-off process when the time comes.
  3. Lower Real Estate Taxes: Through accurate asset classification, you can ensure that your property’s assessed value aligns with its true worth, potentially leading to lower property tax liabilities.
  4. Enhanced Planning for New Construction or Remodels: By considering the tax implications early on and informing your contractor about the information required for the cost segregation study, you can optimize tax savings and overall project planning.

Who Can Benefit from Cost Segregation?

Owners of commercial properties valued at $450,000 or more and residential real estate properties valued at $125,000 or more often qualify for cost segregation studies. Whether you own a retail space, office building, manufacturing facility, or multi-family property, cost segregation can be a powerful tax-saving strategy.

Maximize Tax Savings with Cost Segregation:

At 90px, we specialize in cost segregation studies that help you uncover the hidden value within your property and minimize your tax liabilities. Our team of experts will conduct a thorough analysis, identify qualifying assets, and ensure compliance with all relevant tax regulations. By accelerating depreciation and reducing your tax burden, we aim to leave more cash in your pocket for business growth, debt reduction, and other ventures. Contact us today to learn more about our cost segregation services and start maximizing your tax savings.

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By choosing our M&A tax preparation service, you benefit from the expertise of tax professionals, legal advisors, and financial experts dedicated to guiding you through every step of the process.