cost segregation is a must if you own real estate
Cost segregation is one of the easiest federal tax advantages you can get if you own real estate. It can generate significant cash flow in the early years of real estate ownership. To take full advantage of cost segregation, Plante & Moran puts together a team of experts – engineers and tax specialists – to produce a study that’s respected on audit and, at the same time, maximizes the tax benefit to our clients.
You don’t have to depreciate 100% of building costs over 39 years
Certain items of your building can be considered as either real or personal property, both of which may be subject to much shorter depreciation schedules. Examples include the structures required for a “franchised identity” look, the foundation needed for a service hoist, the electric wiring needed to operate a hoist, etc. If done correctly, cost segregation can save as much as 5-10% of a building’s cost.
Generate significant cash flow in the early years of a real estate purchase
Since we can segregate building costs that can be depreciated over 5, 7 or 15 years – rather than 39 – the depreciation is frontloaded.
Don’t settle for anything less than a team approach
To do the job right – one that’s respected on audit – Plante & Moran always includes an engineer and a tax specialist. Both sets of expertise are required to assure our clients get the maximum benefit.