Saving on taxes is like money in the bank. It’s an easy concept to understand, but a hard concept to execute because tax laws are always changing.
Over the past 20+ years, we’ve earned the reputation as a reliable and credible resource for business and individual tax needs. Our advisors are continually monitoring legislative, regulatory, and precedent-setting developments in the tax world and as tax planning is crucial to almost every financial decision, Shinn & Co provides year-round assistance and relevant tax planning guidance to our clients. In result, our clients rely on this specialized facet of our business and important industry updates.
Our highly experienced team of tax professionals is able to provide you a detailed cost segregation analysis by combining our comprehensive understanding of the relevant tax law changes with the most current methodologies to provide timely and attainable recommendations.
When performing your analysis, we will identify and categorize assets and their costs based on the federal tax purposes and evaluate those items in order to realize the maximum depreciation benefits. Cost Segregation analyses are one of the most worthwhile tax strategies to owners of commercial real estate. It offers the opportunity to defer taxes, reduce current tax burdens, and free up capital via improving current cash flow.
Have you ever heard the saying…
“A dollar today is worth more than a dollar tomorrow” – It is the same with tax deductions.
By utilizing Cost Segregation, our team can identify assets, accelerate the depreciation and in turn, provide a significant increase in cash flow by reducing our client’s tax liability.
Another benefit of a cost segregation analysis is the ability to reclaim “missed” depreciation from prior years, without having to amend tax returns. Furthermore, from the perspective of the IRS, an owner who applies cost segregation is changing from an incorrect method, such as straight line, to a correct method, component depreciation.
Not only is this change in method permitted, approval is automatic once a qualified cost segregation analysis has been performed and the building owner has completed and submitted an IRS form 3115. In fact, IRS rules allow you to realize all of the depreciation adjustment for prior years in the year the study is completed, which can mean an immediate and significant increase in cash flow. Our team works with each client to ensure that Cost Segregation is the right opportunity based on both short and long term goals.
For additional information contact us today