Running a business isn’t just about managing production costs and providing quality services that bring in more customers. An important part of running a business includes employing and understanding various tax strategies that can help your business thrive and progress—which is a tedious process that needs to be handled carefully.
Today, we’re talking about one of the key methods of tax assessment you should employing to identify and reduce taxes—cost segregation.
To put it simply, cost segregation is one of the easiest ways to save yourself tons of money. Let’s delve deeper into the concept of a cost segregation study, how it increases your cash flow, and how cost segregation experts can help you.
What’s A Cost Segregation Study?
It’s a strategic tax planning tool that maximizes the Federal income tax depreciation deductions by identifying all the fixed assets and their costs. The study allows you to create a tax plan that accelerates property depreciation, which in turn, helps you cut your costs on any real estate that has either been constructed, purchased, or remodeled.
A cost segregation study allows personal and real property to be categorized as inquisition costs and construction costs. This allows the taxpayer to reduce their tax burden by accelerating the depreciation deductions through cost segregation.
How Does A Cost Segregation Study Increase Your Cash Flow?
A cost segregation study can help you reclassify your property from a standard 39-year depreciable life to a 5, 7, or 15-year depreciable life. This increases your federal tax credit savings and ultimately improves cash flow. It also helps building and property owners to retrieve the missed deductions from previous years.
A cost segregation study reduces your taxable income because of the accelerated depreciation. This means that a lower amount of your hard-earned money will go to the state in the form of local and federal taxes.
In addition to that, a cost segregation study allows you to ensure your business’s growth by reinvesting your tax savings—which will result in even more cash flow.
Hire Cost Segregation Experts
If you’re looking for cost segregation experts or want to know more about cost segregation depreciation, don’t settle for anything less than the best.
The Darson Group houses an experienced and professional team of cost segregation experts to help you identify potential methods for reducing tax. We specialize in segregating and accelerating the depreciation on the parts of your building that are deemed as non-structural.
Our cost segregation company ensures full compliance with rules and regulations and adjust the depreciation schedule of your assets from the conventional 39-year to a 5, 7, 15-year schedule.