Any structure used for business or as a rental property may potentially benefit from a Cost Segregation Study. What's more, every $100,000 in costs reclassified from building to personal property can result in more than $20,000 in net present-value savings.
In fact, a Cost Segregation Study can actually provide several major benefits that include:
- An immediate increase in cash flow through accelerated depreciation deductions.
- A reduction in both income taxes and real estate property taxes.
- An easy opportunity to claim "catch up" depreciation on previously misclassified assets.
- An independent third-party analysis that will withstand an IRS review
In business, timing is everything. The ideal time for a Cost Segregation Study can vary depending upon your company's tax situation. At BLS, our team of engineers and tax experts will work together with your management and accountants to determine the best tax planning solutions that fits your specific needs.
After obtaining some basic property information, a BLS specialist will provide your company with a FREE preliminary analysis that includes an estimate of the potential tax savings a Cost Segregation Study could generate, plus a written Cost Segregation Study Proposal. This free preliminary analysis will help your company determine the proper strategy and timing, while taking into account the following:
Post-purchase remodel or construction -- look back studies from year placed in service -- pre-construction planning.
The Cost Segregation Study Proposal will include a BLS flat fee based upon the estimated time and materials required to complete the project, which means you will have a complete picture of all associated costs and benefits well before your Cost Segregation Study is ever initiated.