Monday, December 23, 2019

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.

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