Cost Segregation Services
If you have constructed, purchased, expanded, or remodeled any type of real estate, cost segregation studies is a tax planning strategy that you can use to increase cash flow. Here at Woodford Financial, a Kentucky based CPA firm, we can help with this savvy strategy that many accountants and CPAs overlook. Simply put, cost segregation is an IRS-endorsed means of calculating depreciation, accelerating deductions, and deferring federal and state income taxes on certain aspects of a property. Essentially, short-life items are separated from long-life items. For example, a property’s interior and exterior components fall into different tax categories with some being eligible for writing off much sooner than the typical 27.5 or 39 years for the structure. Various building elements such as wiring, HVAC, plumbing, and even concrete can be reclassified for writing off sooner rather than later.
As the IRS’s preferred means of by accelerating depreciation deductions and deferring federal and state income taxes, cost segregation is something every real estate investor and developer should be aware of and put to use!
If you’re ready to start saving money and learn how our cost segregation services can help, give us a call today at 859-832-0500 or request your free consultation online to learn more.
Benefits of Cost Segregation
- Greater tax deductions
- Accelerated depreciation
- Increased cash flow
- Enhanced competitive edge
- Allows for future write-offs when structural components are replaced.
What is Eligible?
- Offices
- Apartments
- Distribution centers
- Hotels/motels
- Restaurants, including fast-food units
- Medical centers and nursing facilities
- Manufacturing facilities
- Shopping centers/retail chains