3 Things To Consider Before Hiring A Cost Segregation Consultant

Cost segregation is one of the highly beneficial and widely accepted tax planning strategies. It is mostly utilized by commercial real estate owners and tenants to accelerate depreciation deductions, defer tax, and improve cash flow. If you’re looking for cost segregation consultants, here are a few tips to consider:

• Research

Before you choose a firm, make sure that you do a lot of research on cost segregation studies. You also need to be sure whether the cost segregation firm stays in compliance with all rules specified by U.S. tax code. The best thing to do is search for multiple services and shortlist the ones you feel are up to your requirement and make an appointment for an interview.

Check how do they determine the tax value of your business

There are three approaches involved in the process

• The Income approach that determines value based on income generation

• The asset approach that is based on a business asset

• The market approach that is based on the sales of shares.

Consider the experience

Look for cost segregation consultants, make sure to choose a firm that provides professionals who have enough experience in this field. They will have more knowledge than those who have just joined the industry.

If you want your business to run smoothly, look for a good firm to help you avoid cost segregation depreciation. You can also consider this guide as you plan your business accordingly.