At Cook Martin Poulson, we don’t just get your taxes done, we actively work to minimize your tax bill. One of the strategies we use relates to your property, called cost segregation studies. We can use this for both commercial and residential real estate.
Cook Martin Poulson performed a cost segregation study on our manufacturing facility and saved us over a hundred thousand dollars in tax.
Cost segregation is the IRS-approved method of reclassifying components and improvements of your commercial building from real property to personal property. These studies allow the assets to be depreciated over a 5, 7, or 15-year life instead of the traditional 27.5 or 39-year life. This results in a reduction of your current taxable income and increases your current cash flow.
Real estate cost segregation is a highly-specialized process that includes an engineering-based breakdown of the components of the property. We partner with highly skilled engineers and architects to conduct the studies and complete the report, that is then filed with the IRS.
At CMP, we work hard to educate our clients on the benefits.
What types of buildings are eligible?
- Commercial buildings of any kind constructed or purchased since 1987
- Apartment Buildings
- New or Existing Buildings
- Buildings purchased or constructed since 1987 are eligible for “catch up” adjustments
- Tenant leasehold improvements
What are the benefits of cost segregation for your property?
- You can reduce your annual income taxes.
- You can increase your cash flow by accelerating the depreciation deductions on your residential or commercial property.
- You can claim “catch-up” depreciation if you have previously misclassified assets.
- You can have an independent, third-party analysis of your building/property and rest assured that the report will stand up to the IRS should you use cost segregation.
Do you Qualify for a Cost Segregation Study?
Contact the professionals at CMP to help you determine if a cost segregation study is right for you.
Cost Segregation Studies For Commercial And Residential Properties Advisors: