Monday, May 14, 2012

What is a Cost Segregation Study

A cost segregation study is something that can help you determine if your business can benefit from the process of cost segregation. If you do not know what this is, it involves using a depreciation method over several years and then recalculating the amount of taxes that are paid each year due to the depreciation. You may think that it sounds too good to be true, but this is a relatively risk free process. The IRS will not examine you more closely and this can be the deterrent why many people avoid cost segregation.
You may want to have your study conducted during the construction or remodeling phase. This is the recommended time frame and when you can expect to see the best results. If you start the cost segregation study during the new construction phase you will be saving money from the beginning and this can give you a tremendous advantage.
If you are an investor you may find that the taxes you pay each year can be completely overwhelming and you may want to use this IRS approved method to help you save on all of the properties you are associated with. This can help you free up some money that you can use for other things and many investors are looking for as many ways to save money as possible.
You may want to contact a cost segregation service directly and find out how much you can save with a cost segregation study. You should never be afraid or embarrassed to ask about the financial aspects of any deal you are a part of and if you find out about the financial aspects in the very beginning, there will be no surprises later.
You may also want to use other tax deductions to help you save even more money and there may be many other things you can do to lessen the financial burden of property ownership. This is something you will want to talk to your accountant further to find out if you can do other things to save you money on your taxes each year.
A cost segregation study can be a very eye opening experience and you may be pleasantly surprised at the money you can be saving. If you have been having any type of financial difficulties a tax relief may be just what you need to help you get back on your feet.
Todd Strumpfer is a Cost Segregation Services Inc representative who is passionate about helping business owners in keeping as much of their money as possible. He provides personal service, a quarterly newsletter on the benefits of using this powerful tax-reducing strategy, and a free quote on how much tax money can be saved.