As a commercial property owner, how would you like to receive cash flow from tax savings of 6-10% of your building cost within the first five years of ownership? That’s $60K-$100K for each $1M in building costs!
Cost Segregation is an IRS-approved application by which commercial property owners can accelerate depreciation and reduce the amount of taxes owed. This savings generates cash flow that owners often use to reinvest in the business, purchase more property, apply to their principle payment or spend on themselves. This is a form of depreciation approved by the IRS and DOES NOT increase the possibility of an audit.
It’s simple, legal and recommended in the August, 2004 issue of the Journal of Accountancy for CPA’s. The article stated, “A taxpayer can substantially increase cash flow by segregating property costs.”
An independent third party performs an engineered cost segregation study on your commercial property. The study accelerates the depreciation of your building/renovation components into faster depreciation categories such as five-, seven- and 15-year rather thanconventional 27.5- and 39.5-year schedules. Five- and seven-year items might include decorative building elements, electrical for dedicated computer equipment, and carpet. Fifteen-year items might include site utilities, landscaping and paving.
This engineered cost segregation study results in much higher depreciation expense and significantly reduced taxable income for the property owner. Best of all, the IRS ruling states cost segregation can be applied to all categories of buildings purchased or built since 1986, including renovations, and there is no need to amend your tax returns.
For years, quality, affordable, engineer-based cost segregation studies have been available, but rarely utilized by individuals and business owners. Our team of experts can help easily apply the results to your current financials with your CPA or financial professional to assure successful results. In addition, our national coverage and expertise allows us to work with customers and properties across the United States.
At IFC, we then take this process one step further. It is our role to “find money” being lost unknowingly and unnecessarily. Cost Segregation is a great way to do this, as most business owners do not realize they are overpaying the IRS, year over year!
After your preliminary results of how much money you can recover from the IRS, we begin the process of understanding how a personalized Business Cash Flow Strategy will work for you.
Having access to capital is of paramount importance to business owners. Imagine if that capital reserve actually functioned like a credit facility with a “no penalty and no questions asked money access” policy for your business? What if you never had to set foot in a bank again? What if that capital reserve grew with compounding interest and could predictably tell you where you would be financially in 5, 10, 20, even 50 years?
Uncertain times show us the importance of certainty in our business planning. Let us help you get on the path to financial security and safety today.