You’ve made a significant investment by purchasing, constructing, or upgrading property, but you may be overlooking a smart tax strategy. It’s a given that you want to increase your cash flow and reduce your taxes. A cost segregation study can help you do that by depreciating real property over much shorter periods of time than the typical time frames. By taking deductions sooner, you lower your current-year tax liability and free up more capital.
When you purchase a property, you’ve purchased a building and its components. While the real property is typically depreciated over 39 years (or 27.5 years residential), 20-40% of the purchase can often be reclassified as personal property and depreciated much more quickly (usually 5, 7, or 15 years). Flooring, signage, landscaping, and parking lots are examples of components that can often be reclassified.
For more information on how a cost segregation study can help you, view the webinar presented by Brendan Walsh, cost segregation expert and tax leader from Clark Shaefer Hackett.
Clark Shaefer Hackett is also offering Conway Center members a no-fee, no-pressure cost segregation feasibility analysis, so you can consider whether a full study will benefit your company. View the Service Provider Offerings section of our website for more information.