Industrial

IF YOUR WALLS COULD TALK
What are the walls of your building – and the roof, plumbing, electrical system – hiding? It could be yearly federal income tax savings, waiting to be discovered.

A cost segregation study can help you uncover these annual income tax savings. In the last couple of years, has your business:

• Constructed a new facility?
• Acquired an existing facility?
• Renovated an existing facility?

If you answered “yes” to any of these, then a cost segregation study may save you money.

WHAT IS A COST SEGREGATION STUDY?
Through a cost segregation study, the components of a building are reclassified into proper class “lives” according to government legislation and IRS revenue rulings. The result: Owners maximize their tax depreciation deduction, and reduce current-year income taxes.

IMPROVED CASH FLOW
The main benefit of a cost segregation study is improved after-tax cash flows from accelerated tax depreciation. For example, a study we performed showed that a client with nearly $10 million invested in buildings produced improved cash flows through tax deferrals of around $390,000 over the life of the project. That same company also deferred over $400,000 in taxes in the first year – $400,000 it didn’t have to pay in taxes, and available for day-to-day operations. What could you do with that kind of money?

SELLING AFTER STUDY
If you sell your property, your company may have to recognize more ordinary gains. While the profit on the sale of real property is recognized as capital gains, personal property is recognized as ordinary gains, and taxed at a higher rate.

FREE INITIAL ANALYSIS
No worries. No surprises. We’ll provide a free initial analysis, including the estimated tax deferral as well as the estimated cost to do the actual, full analysis. This way you can determine the cost-benefit of the Cost Segregation Study for your business with no commitment beforehand.