Cost segregation as a tax strategy.
Cost segregation is available to taxpayers involved in the ownership, renovation, and construction of commercial real estate. Some of the benefits of cost segregation as a tax strategy can include the deferment of taxes, the reduction in tax liability and the ability to increase cash flow.
Imperative to this strategy is an engineer based cost segregation study that will identify the depreciation benefits. The CPAs at GR Reid will work with this report and supply documentation that supports the time value of money statement.
The advantage of cost segregation is that up front deductions are made quantifiable and are spread out over a long period of time.