Property Owners Liability

What is a cost segregation study? Separation costs are a lucrative tax strategy that allows commercial property owners to claim more deductions and lower their overall tax liability --- which provides immediate cash gains. The goal is to accelerate depreciation for tax purposes. Distribution of Property Consultants, LLC., Is a national company based in Huntington, New York, which provides comprehensive engineering costs of segregation "polls." A quality study is an intensive fact-finding is based on tax law, complex and technical analysis. (IRS) CAP is a free resource for commercial property owners, CPAs, tax certiorari, realtors, title companies, appraisers, 1031 Exchange services and other companies professional involved in commercial real estate.

Purpose of a study of segregation costs

A cost segregation reveals the cost of components for movable and immovable property with the ability to remove assets that the renovation or replacement is necessary. CAP adheres to the IRS elements 13 quality principle. " We stand behind our reports were never verified. However, our policy to support the verification protects you in the unlikely event of an IRS examination at no additional cost.

Case

A REIT has bought an office building in Texas and CAP activity to produce a study of segregation costs. CAP engineers and architects conducted a comprehensive inventory of land, buildings, improvements and accessories according to the guidelines of the IRS. When evaluating their purchasing decision, the client had estimated that its first year depreciation deduction for $ 384,000 on the basis of straight-line plans. The PCB analysis identified significant opportunities to reclassify assets such as personal property and land

RESULTS: The total depreciation deductions 1st year

$ 800,000

Total 1st year tax benefit (tax rate x 1st year depreciation of 39%)

$ 312,000