Are you taking advantage of tax savings on your commercial property?

If you own a condominium building, apartment building, office space, retail space, shopping center, hotel, health care facility, church, temple, warehouse or other type of commercial property, a cost segregation study might save you a substantial amount of money on your next tax return. Here’s how it works. When you pay your taxes, the IRS allows you to depreciate the value of your commercial property at 39 years for commercial buildings or 27.5 years for apartment buildings. A cost segregation study allows you to separate out various elements of your property which may be eligible for shorter depreciation periods. This lowers your overall declared property value and in turn lowers your taxes. For example, most furniture and fixtures within the property can be depreciated at 7 years. Machinery and equipment is generally depreciated at 5 years. Eligible land improvements are depreciated at 15 years. All of these are much shorter than the standard depreciation rate of 27.5 or 39 years. The tax savings can be substantial. Tax savings for our clients have ranged from $45,000 to $2.5 million. One of our clients saved over $2 million in taxes in one year with a return on his investment of $25 for every $1 spent on these studies. The average percentage of savings for our clients ranges between 20% and 50% depending on the type of property with an average return of $15 for every $1 of study costs. Call Larry Rosenblum at 866-287-5050 to find out if you could be saving more on your next tax return with a cost segregation study. ___________________________ Are you paying too much income tax on your commercial property? Take our online quiz to find out. www.glcpa.com/quiz __________________________