Saving Substantial Tax $$ on a property purchase or ownership, using Cost Segregation
- by Gary Krupa, CPA
The economy is harsh, and the commercial real estate market is in a state of decline. Nonetheless, the tax law provides an excellent way to make more money from a real estate investment. The following information describes a tax-saving technique that's especially helpful if you:
- own commercial or residential rental real property, and want to maximize your savings or minimize the cost of ownership.
- are planning to purchase or build commercial or residential rental real property, and want to effectively reduce the purchase or construction price.
- sell or lease commercial real estate, or residential rental property, and want to help your clients save money on their property purchase or ownership.
A cost segregation study can help a real estate purchaser or builder substantially increase his or her cash flow. This is how: cost segregation can provide real estate purchasers and owners with tremendous tax benefits from accelerated depreciation deductions and easier write-offs when an asset becomes obsolete, broken or destroyed. It involves identifying the components of a building and land improvements that may be treated as personal property, and then depreciating them over 5, 7 and 15-year lives. Most people depreciate the entire building over a much longer period, as 39-year property. You or your clients can thus maximize cash flow from a property by using the tax law to full advantage. It's an effective strategy for commercial property and residential rental apartment complexes.
The benefit can be as much as $20,000 for every $100,000 of building costs classified as tangible personal property instead of as real property.
Relatively few people know about the technique, so if you're a real estate professional, just knowing about it can give you a competitive advantage.
Please refer to the information given on the Journal of Accountancy website, to learn more about how cost segregation can benefit you or your clients. You can also find out more about it by visiting Wikipedia and entering "cost segregation" in the search box. You'll note in the Journal of Accountancy article that bonus depreciation may be taken on personal property that's been segregated. This results in substantial tax savings in addition to the benefit obtained by claiming depreciation over much shorter useful lives.
My firm and an associated firm can help you gain a better understanding of this technique and how you can best utilize it to your advantage to increase your revenue. Or we can help you present this strategy to your commercial real estate clients to best advantage, so that you can serve as their consultant for helping them increase their cash flow, or offer a cost segregation study as a value-added service. Please contact me for more information.
Gary Krupa, CPA
Concord, Ca
Office phone: (925) 826-5066
Cell phone (805) 320-8503
Fax number (866) 486-8328
E-mail gkcpa@astound.net
Skype name gary.michael.krupa
If you’re in real estate, you don’t have to sell a building to make a good deal of money. With a cost segregation study, you can save $20,000 for every $100,000 you spend purchasing the building!
Let the Government cover the cost of your property purchase! The Government has more money than we do.
The economy is harsh, and the commercial real estate market is in a state of decline. Nonetheless, the tax law provides an excellent way to make more money from a real estate investment. The following information describes a tax-saving technique that's especially helpful if you:
- own commercial or residential rental real property, and want to maximize your savings or minimize the cost of ownership.
- are planning to purchase or build commercial or residential rental real property, and want to effectively reduce the purchase or construction price.
- sell or lease commercial real estate, or residential rental property, and want to help your clients save money on their property purchase or ownership.
A cost segregation study can help a real estate purchaser or builder substantially increase his or her cash flow. This is how: cost segregation can provide real estate purchasers and owners with tremendous tax benefits from accelerated depreciation deductions and easier write-offs when an asset becomes obsolete, broken or destroyed. It involves identifying the components of a building and land improvements that may be treated as personal property, and then depreciating them over 5, 7 and 15-year lives. Most people depreciate the entire building over a much longer period, as 39-year property. You or your clients can thus maximize cash flow from a property by using the tax law to full advantage. It's an effective strategy for commercial property and residential rental apartment complexes.
The benefit can be as much as $20,000 for every $100,000 of building costs classified as tangible personal property instead of as real property.
Relatively few people know about the technique, so if you're a real estate professional, just knowing about it can give you a competitive advantage.
Please refer to the information given on the Journal of Accountancy website, to learn more about how cost segregation can benefit you or your clients. You can also find out more about it by visiting Wikipedia and entering "cost segregation" in the search box. You'll note in the Journal of Accountancy article that bonus depreciation may be taken on personal property that's been segregated. This results in substantial tax savings in addition to the benefit obtained by claiming depreciation over much shorter useful lives.
My firm and an associated firm can help you gain a better understanding of this technique and how you can best utilize it to your advantage to increase your revenue. Or we can help you present this strategy to your commercial real estate clients to best advantage, so that you can serve as their consultant for helping them increase their cash flow, or offer a cost segregation study as a value-added service. Please contact me for more information.
Gary Krupa, CPA
Concord, Ca
Office phone: (925) 826-5066
Cell phone (805) 320-8503
Fax number (866) 486-8328
E-mail gkcpa@astound.net
Skype name gary.michael.krupa
posted by Gary Krupa - Citizen, CPA, Adventurer et Francophone | 13:08
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