Monday, May 14, 2012

Cost Segregation Study - Consider Cost Benefit

The benefits we cost segregation study should be to increase current cash flow by reducing the overall tax burden for the taxpayer to the IRS and local taxation authorities. Though you consider engineering and accounting to be very boring fields of endeavor, it is likely that the tax savings and larger tax refund will come in very handy when you get that check from the Internal Revenue Service.As long as you hire the right specialist you should be very pleased with the outcome of this special report in the appropriate situation.
Not every commercial building should have a this analysis done on it. That is because some real estate properties are operating at a loss before accelerating depreciation. If that is the case in why spend money on a cost segregation study when it will not result in a tax savings. In fact when dealing with real estate potential passive losses there are many situations when an increased loss will not result in any tax savings. So it really makes sense to consult with your tax advisor for you order a cost segregation study. When talking with the CPA, or tax preparer question that should be asked is do I need to increase my real estate losses.
So it is important that you at least have your prior years taxes available to see if you will actually save money or just increase available losses. One clue that you may not need such a service is to see if you have carryforward passive losses from the prior year and how much. If you have more than enough passive losses than it is possible doing this study will be an expense that will not give you any tax benefit or tax savings. So before you commission an expert to do this you should consult and look at your tax situation.
Neil Rischall is the CPA behind the cost segregation analysis website that we help you make an independent choice about a cost segregation study.
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