When is the Best time to perform a Cost Segregation Study?

     A Cost Segregation Study should be conducted immediately after a property is placed in service to maximize benefits. Conducting the study upon purchase allows the engineer to accurately assess the property and identify all assets present at the time of purchase. This precise assessment ensures that each asset is classified correctly, enabling you to maximize your tax savings from day one. Early implementation of a Cost Segregation Study can lead to significant tax benefits by accelerating depreciation deductions, thus improving your cash flow right from the start.

Can I Benefit from Cost Segregation on a Property Purchased Years Ago?

     The IRS allows for the benefits of Cost Segregation to be applied retroactively using a “look-back” study. Our team conducts these look-back studies on properties purchased or renovated within the past 10 years. By reclassifying assets to their correct depreciable lives, taxpayers can catch up on the depreciation they would have received had the study been performed initially.

     One of the key advantages of a look-back study is that it does not require an amended tax return. Your CPA simply submits a IRS Form 3115 based on the results of our Cost Segregation Study. This streamlined process ensures you can still realize substantial tax savings without the hassle of filing amended returns.

     If you’ve not yet conducted a Cost Segregation Study for your property, now is the perfect time. Whether you are looking to maximize your tax benefits from day one or catch up on missed depreciation, our team of experts is here to help. Call 888-645-4401 or email [email protected]. Don’t miss out on the opportunity to optimize your tax savings and improve your cash flow.