How Can Cost Segregation Help Minimize Your Tax Burden
One of the most thriving industries these days is real estate. For many investors, maximizing their returns or make their income flow quickly for their commercial real estate project. Projects like these often include buying a property, remodeling, expanding or constructing any kind of real estate. In order to do this, they will need a professional to assist them with cost segregation. What is Cost Segregation? Cost segregation is an IRS-approved method that allows investors to increase their cash flow or maximize their returns by accelerating the deductions or the depreciation as well as deferring the federal and state income taxes. If you, an investor, purchases a property, the value does not just come from the structure itself. As much as 20% to 40% of both these components fall under tax categories that can be written off much quicker than the structure itself. Any type of commercial property can be a candidate for cost segregation, especially when it has been in servic...