Minimizing Income Tax Liability Includes Cost Segregation
Cost Segregation is an IRS endorsed tax strategy that is simple and easy to understand. The purpose in having a Cost Segregation Study performed is to allow owners to depreciate their commercial property in a manner that is different from the standard method of accounting, which is 39 years. Let’s face it, if the owner were a 60-year-old property owner, how much depreciation on the property would the owner realistically expect to enjoy? If you think about this cynically, the Government is betting that the life of the property, in terms of depreciation (39 years), is going to “outlive” most property owners! So, wouldn’t it be nice to dramatically accelerate the depreciation now so that the owner can take advantage of an immediate cash flow in the current tax year? Well, now it can be done legally.
