If you have real estate holdings, cost segregation can reduce your tax liability considerably. For years, Denman & Company has helped countless clients lower their tax burden through cost-segregation studies.
In a nutshell, cost segregation means that while commercial real estate costs are depreciated over 39 years (27 ½ years for residential), many items can be broken out of those costs and depreciated over much less time.
For instance, personal property items generally depreciate in five to seven years. For land improvements, the duration is 15 years. Why lump everything together in a situation that doesn’t benefit you? Our team will help you take these deductions as soon as the law allows.
Cost segregation is a fair and sensible way to increase your cash flow. It can be applied to new construction and existing buildings alike, so it should be a key part of your overall tax planning.