Boosting tax benefits,
cash flow and ROI.
Cost segregation can have a significant impact on your bottom line. Specifically, the process identifies and quantifies the portions of building or property renovation costs which are eligible for shorter tax recovery periods. The result? Enhanced tax benefits at the beginning of a new project or renovation which can significantly boost your after tax cash flow and return on investment.
Individuals or business owners, regardless of industry, can benefit from cost segregation as long as you own, operate or rent commercial or residential real estate.
Commercial and residential real estate are depreciable over an extended period. Cost segregation can significantly shorten the depreciation periods for certain non-structural and land improvement costs and other tangible personal property assets. Implementing accelerated depreciation methods that are not generally available to real property will further increase your tax benefits.
The Cost Segregation Team at MWE stays on top of new developments and ensures that your study is tailored specifically to your needs.
Each study involves:
- Identification of all non-structural and land improvement costs & other tangible personal property assets.
- Categorization of these costs in accordance with applicable asset classification guidelines incorporating the most favorable depreciation lives & methods.
- Development of proper documentation for taxing authorities & management purposes.
- Preparation of additional management information to help you enhance cash flow, reduce certain costs, qualify for various incentives & gain greater control over expenses.
When you need to make confident choices about your cost segregation strategies, MWE is there to answer your questions and alleviate your concerns, while providing clear, concise guidance.
cost segregation articles
new regulations offer rare tax boon for real estate businesses by Scott O'Sullivan