Cost segregation, an IRS approved method of re-classifying components and improvements to a commercial or residential rental building, can greatly reduce your taxable income and increase your cash flow.
The benefits of a cost segregation project are derived from accelerated depreciation based on classification of assets as personal property (5-year or 7-year depreciation) or land improvements (15-year) rather than real property (39-year or 27.5 year).
Based on your particular circumstances, 25% or more of the cost of your building may be able to be reclassified. This may result in hundreds of thousands of dollars in present value savings.
Want to learn more about how cost segregation services can help your business? Read our Cost Segregation FAQ from Smart Business Cleveland.