Attention Business Owners!!!
Due to a newer tax reform that was passed, you are now eligible for accelerated tax credits on your business.
Constructed, purchased, expanded, or remodeled any kind of real estate to include, _leased _build outs to make your commercial condo or office space usable since 1987 and income producing residential properties.
If so, you may be able to dramatically improve your cash flow by utilizing cost segregation. Most CPA's depreciate commercial property over 39 years. In 2004 the IRS developed guidelines that allow the depreciation of commercial property based on the true useful lives of its depreciable parts. They also allowed that a look-back study could be completed that allows the owner to go back to the acquisition date of the property and +catch-up +on the past depreciation. That total depreciation expense may then be taken on your current tax return, without requiring the filing of amended returns. The key to the IRS guideline requires that an independent engineering firm determine which parts of the building qualify and make a determination of life-time and value.
Most commercial property owners/lessee's have not taken advantage of this for a variety of reasons. Although favorably ruled on in tax court in 1997, it wasn't made a guideline until 2004 and was initially only available through the largest CPA/appraisal firms. Secondly, most CPA firms do not have engineers on staff, thus they cannot complete an IRS compliant study. These are really not accounting based studies. They require a combination of engineering, the reading of blue prints, the knowledge of construction, and interpretation of the tax code. We (CSSI) are one of the largest providers of these studies and develop all of the appropriate data that allow your CPA/tax advisor to prepare your return, taking advantage of the IRS guidelines.
I would be happy to provide a no-cost preliminary analysis (Free Report) of your property, to show you what the potential tax benefits would be. This could free up a considerable amount of cash. CSSI, is strictly a Cost Segregation specialty, engineering firm & can and will work directly with your CPA, lawyers, or other financial professionals to ensure proper and/or maximum benefit of the study.
Regional VP / Profit Executive
Cost Segregation Services, Inc.