A cost segregation study is an advanced financial tool that analyzes the components of
your property and reclassifies them into different asset categories.Instead of depreciating
your entire property over the standard 27.5 years for residential properties or 39 years for
commercial properties, certain components can be depreciated over much shorter
periods—5, 7, or 15 years—saving you money now rather than later.
Some examples of reclassified components include:
Specialty flooring
Modern lighting fixtures
H VAC systems
Outdoor landscaping
Parking areas
Electrical systems
Why Choose Cost Segregation?
Cost segregation isn’t just a tax-saving strategy; it’s a game-changer for your real estate investments. Indeed, whether you own a commercial building or residential rental property, you can benefit from the significant advantages it offers.
1: Accelerated Tax Deductions
Reclassify property elements to shorter depreciation schedules and lower your taxable income. As a result, you can enjoy significant tax benefits.
2: Boosted Cash Flow
Keep more money in your pocket now, giving you more flexibility to reinvest or cover expenses. Consequently, you’ll have increased financial freedom.
3: Defer Taxes
Delay paying taxes while strategically planning your future finances. In other words, you can postpone tax payments, giving you more time to grow your investments.
4: Maximized Returns on Investment (ROI)
Increased tax savings translate to higher profitability for your property investments. Therefore, you can achieve a higher return on your investments
Who Should Consider a Cost Segregation Study?
Cost segregation is ideal for:
1:Property owners who have recently purchased, constructed, or renovated a building.
2:Investors who want to optimize cash flow.
3:Businesses constructing new facilities.
Our Proven 5 Step Process:
Here’s how we make it seamless and stress free to reap the benefits of cost segregation:
1: Property Analysis
We dig into your property’s construction documents, blueprints, and purchase agreements to identify potential tax-saving opportunities. In other words, we thoroughly examine your property’s history to uncover areas where accelerated depreciation can be applied.
2: On-Site Inspection
Our team of expert engineers and accountants will visit your property to assess and categorize its components. Consequently, we’ll physically inspect your property to accurately identify and classify its various parts.
3: Detailed Asset Classification
We identify items eligible for accelerated depreciation, ensuring no opportunity is missed. Furthermore, we meticulously review each component to determine if it qualifies for faster depreciation, maximizing your tax savings.
4: Comprehensive Reporting
You’ll receive a detailed, IRS-compliant report outlining every reclassified asset and the associated tax savings. As a result, you’ll have a clear understanding of the specific benefits and potential tax savings from our analysis.
5: Support with Tax Filing
Our team collaborates with your tax advisor to ensure smooth implementation of the study into your tax filings. Finally, we work closely with your tax professional to seamlessly integrate our findings into your tax return, minimizing any potential complexities.
Real Life Example: How Cost Segregation Works
A commercial property owner purchased a $2 million office building. Subsequently, after conducting a cost segregation study, they identified $500,000 worth of assets eligible for accelerated depreciation over 5, 7, and 15 years. As a result, in the first year alone, the property owner saved $150,000 in taxes, which they reinvested into upgrading the property’s amenities, attracting high-quality tenants, and increasing overall rental income. Therefore, this tax-saving strategy not only improved their cash flow but also enhanced the property’s market value.https://fmfinancialservicesllc.com/
Real Results, Real Savings:
Imagine saving thousands of dollars in taxes each year—that’s the power of cost segregation. Indeed, the upfront investment in a study pays off many times over, allowing you to grow your portfolio, reinvest in your properties, or enjoy greater financial freedom.
Why Partner with FM financial services?
At FM Financial Services, we specialize in unlocking tax benefits through expertly crafted cost segregation studies. In other words, we help you save money on your taxes by identifying specific assets within your property that can be depreciated more quickly. Here’s why clients love working with us:
- Tailored Solutions: We understand that every property is unique, and we customize our approach to maximize your savings. In other words, we tailor our services to fit your specific needs.
- Experienced Professionals: Our team of engineers and tax experts is equipped to handle properties of all sizes and complexities. Consequently, you can trust that we have the knowledge and experience to handle your specific situation.
- IRS Compliance: Rest assured, our studies meet all IRS guidelines, minimizing audit risks. Therefore, you can be confident that our work is accurate and legally sound.
Take Control of Your Tax Savings Today:
Ready to take your real estate investments to the next level? Cost segregation studies can help you achieve your financial goals faster and smarter. As a result, Contact us today
to schedule a consultation. Let’s work together to make your property work harder for you.