Question : Any one heard of a tax saving stratgery called cost segregation?
This is a method of acceleration depreciation write-off on part of a commercial property.
- asked by David-H
All Answers:
Answer #1
No. However, I think a flat tax would bewonderful.
- answered by Anonymous D
Answer #2
Cost segregation works best with new or newerproperties, or properties with recent, significantadditions. Cost segregation separates the actualcosts, and allows faster depreciation for itemsthat tend to waste faster. For example, newcarpeting will depreciate faster than the concreteslab.It is a good way to lower tax costs. Rememberthat it also affects your tax basis in theproperty, and can affect capital gains if yousell.Most of the larger accounting firms haveexperts in cost seg. Even medium size firms havean expert or a relationship with a company thatcan perform a cost seg analysis.
- answered by fatalleycat41
Answer #3
Oh yes. Take a $4 million dollar building. Without cost segregation pretty much the entirething defaults to a tax building life which is 39years!!I don't know a single company who doesn'twant to save a tax dollar today and pay it later(remember, it is all timing) so cost segregationworks really well.You essentially separate thereal from the personal property. Personalproperty have much shorter lives, average around7. And the depreciation method is doubledeclining as opposed to the 39 year life which isstraight line. It's almost a no-brainer!
- answered by Molly
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measure and fulfill your financial needs
