Frequently Asked Questions on Cost Segregation Study and Services

Cost segregation is a much critical as well as a widely accepted tax planning technique made in use by numerous commercial real estate owners and tenants. Cost segregation study helps to accelerate depreciation deductions, channelize cash flow and defer tax. For a more detailed overview, you can visit a credible website sources recommended by government authorities. With, below are some essential FAQ regarding cost segregation and its services, that might be useful for you. 

What is a quality study of cost segregation?

A quality study of cost segregation is based on a engineering-based analysis. It considers review of a relevant information such as data cost, building plans, and lease agreements.

What is the best time for its study?

The appropriate time for its study is the year the property is positioned in service by the latest taxpayer. Whether it is a new construction or an acquisition, it is usually most productive to maximize depreciation deductions from the very first year.

What types of properties qualify for cost segregation?

Any commercial property that is positioned in service after December 31, 1986 are permitted to avail for a cost segregation study. Also, any property, irrespective of the size will qualify for that. But the cost and the perks associated with it may not allow low-valued properties from being the better candidates. 

Consider these FAQs and make sure to use a cost segregation service for your business.

3 Things to Know About Commercial Real Estate Appraisal

If you want to get a commercial real estate appraisal done, as you want to establish a lease value, here are three things that you should now.

• The inspection is just the part of the appraisal process

It totally depends on the size and complexity of the property to inspect it and the whole process might take less than an hour to several hours. Many clients think it as the only process; however, it is just the beginning. Appraisers research zoning records and public ownership investigate lifestyle and demographic information, then compile comparable sales, rentals and replacement costs. After this, they analyze this information which is related to the property. At last, they write a report on their findings.

• Never misrepresent the facts

Appraisers will verify everything that you tell them from other sources. They are professional skeptics. They may even ask the questions that they already know the answer just to test the credibility of the person showing them the property. They are always thinking about how they are going to defend their opinions if ever brought to court. Therefore, make sure to never misrepresent anything otherwise the appraiser will discount the credibility of anything else that you say.

• The Client Is the Party That Orders the Appraisal

The lender is the client when the appraisal is for financing. Appraisers are committed to maintaining the confidentiality of their clients, so if you are the borrower or any other party, the appraiser will never release the appraisal report or any other confidential information to you. If you are afraid that the appraised value might be higher than the assessed value when you order an appraisal as part of a property tax appeal, you can be sure because the appraiser won’t release the results to the property’s tax board without your permission.