As a commercial property owner, you can receive an interest free loan from the Government: An opportunity not to be missed!

As the saying goes, timing is everything. That is especially true when it comes to owning commercial real estate. The timing referred to here is the timing of depreciation expense and the opportunity to accelerate those expenses. In simple terms, a cost segregation study is an IRS-approved application that analyzes the components of real property and “segregates” non-structural assets that can be depreciated over a shorter period of time (5 years) than the rest of the building (39 years). A few of the key benefits include: 1. Accelerating depreciation deductions yields dramatic tax savings immediately. 2. Write-offs occur sooner. 3. Increases cash-flow. 4. The real benefits are in the time value of money; tax savings obtained early on can be used to reinvest in the business, purchase more property, apply to the principal payment or spend in whatever manner you see fit. 5. Estate planning. If the owner dies, the benficiaries can receive a step-up in basis and have a new cost segregation study performed at the new higher cost basis obtaining the cash flow benefits again. The opportunity to receive real tax savings that impact cash flow in the short term is a strategy that should not be overlooked. Fortunately for you, you will no longer be among the commercial property owners that are over paying their income taxes.