Most real estate owners know the value of depreciation, but few take full advantage of the benefits.
Why? There are several reasons:
- Many owners are simply unaware of the magnitude of the potential benefits.
- Most owners and accountants are unable to extract the appropriate cost information from the contractor’s project documents.
- The building was purchased long after it was built and the original cost information no longer exists.
A Cost Segregation Study eliminates these deficiencies. It enables the property owner to take full advantage of accelerated depreciation, reduced tax liability, and increased cash flow.
Ideal candidates include:
- Commercial buildings (industrial, office, retail)
- New and existing buildings
- Mixed-use and apartment buildings
- Buildings costing of $600,000 or more (construction cost)
- Tenant improvements costing $400,000 or more
- Private sector owners who have taxable income
- Facilities that were purchased or constructed after 1986