Considering a Cost Segregation Study to Reduce Tax Liability and Increase Cash Flow?
If you own commercial real estate and you're looking to reduce your tax liability by optimizing tax deductions, then a Cost Seg is a great solution. By identifying and calculating eligible building components, JBA can deliver an audit-proof cost segregation deliverable to support accelerated tax deductions resulting in additional cash flow!
Contact Us Today to Unlock Hidden Value with Precision Cost Segregation
In today's fast-paced world, JBA's Founder, Jonathan Bryant, CPA, believes efficient, cost-effective services and professionalism are essential. Whether you're a passive investor or a large real estate company, our Cost Segregation Services can provide you with the increased tax deductions you're looking for on this year's tax return.
Cost Segregation Benefits:
Increased Tax Deductions
Instead of depreciating the entire property over a standard 27.5 or 39 years, the study identifies assets with shorter useful lives. These components are then depreciated over shorter periods, resulting in increased tax deductions in the earlier years of ownership.
Enhanced Cash Flow
By front-loading depreciation deductions, a Cost Segregation Study can significantly enhance the property owner's cash flow. The increased tax savings can be reinvested or used to fund ongoing property expenses, renovations, or other investment opportunities.
Asset Valuation
Asset valuation will allow property owners to recognize a loss on the removal or retirement of certain components that were identified and segregated during the cost segregation process.
Pricing
Our firm offers comprehensive cost segregation studies tailored to your property's unique needs. Our fees typically range from $3,000 to $12,000 for a single property, depending on its size and complexity.
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However, we understand that many clients own multiple properties and seek to optimize their tax strategies across their portfolio. That's why we offer discounts for bundling multiple properties into a single engagement. Please contact us to discuss your specific portfolio and receive a customized quote.
Additionally, for properties that have claimed depreciation on prior tax returns, we may require the filing of Form 3115. The fee for each Form 3115 is $750
What is a Cost Segregation Study?
A Cost Segregation Study is a strategic tax planning tool used by real estate owners and investors to accelerate depreciation deductions for certain components of a commercial property. This study involves identifying and reclassifying the costs of specific assets within a property, allowing for a shorter depreciation recovery period. The goal is to maximize current tax benefits and improve cash flow for property owners.
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In the United States, buildings are typically depreciated over a long period (e.g., 27.5 years for residential real estate and 39 years for commercial real estate) using straight-line depreciation. However, certain components of a building, such as personal property, land improvements, and certain building elements, have shorter useful lives.
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A Cost Segregation Study breaks down the costs of a property into various categories, including:
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Personal Property: Assets that are not part of the building structure, such as furniture, fixtures, carpeting, and certain equipment.
Land Improvements: Improvements made to the land, like sidewalks, landscaping, and parking lots.
Building Components with Shorter Lives: Certain structural and non-structural elements, like interior finishes, specialized lighting, and certain mechanical and electrical systems, that can be depreciated over shorter periods.
By segregating these components and assigning them to shorter depreciation periods, property owners can front-load depreciation deductions, resulting in increased tax deductions in the earlier years of ownership. This, in turn, leads to reduced taxable income and improved cash flow.
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Only a qualified team should conduct a Cost Segregation Study, such as engineers or tax professionals with construction knowledge. They evaluate construction costs, review blueprints and specifications, and consider applicable tax laws and guidelines to determine the proper classification of assets.
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It's important to note that a Cost Segregation Study requires compliance with tax regulations and guidelines. Property owners should work with experienced professionals to ensure that the study is conducted accurately and in accordance with tax laws. Additionally, the benefits of cost segregation can vary based on factors such as the property type, its use, and the individual tax situation of the property owner.
Why Choose Us
At J. Bryant & Associates, we understand the importance of maximizing your tax savings while minimizing costs. That's why we pride ourselves on offering competitive pricing for our cost segregation services. Here's why you should choose us:
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Competitive Pricing with Lower Overhead
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Our firm operates efficiently, allowing us to offer competitive pricing without compromising on quality. By maintaining lower overhead costs, we pass the savings directly to you, ensuring you receive exceptional value for your investment.
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Big 4 Accounting Firm Experience
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Our team brings a wealth of experience from top-tier accounting firms, including Big 4 expertise. With our background in leading financial institutions, we have a deep understanding of complex tax regulations and accounting principles, ensuring accuracy and compliance in every cost segregation study.
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On-Site Property Inspection
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Unlike some firms that rely solely on virtual inspections, we believe in the importance of on-site visits. Our experts personally visit each property to conduct thorough inspections, capturing detailed information firsthand. This hands-on approach allows us to identify all eligible assets accurately, maximizing your depreciation benefits and minimizing the risk of errors.
Choosing J. Bryant & Associates means choosing a partner committed to delivering results that exceed your expectations. Contact us today to learn more about how our cost segregation services can benefit your business.
P: (404) 312-2347