Cost Segregation Partnerships
Why do more CPAs choose Cost Segregation Consultants for their cost segregation studies than any other firm in the western U.S.? We have performed over 3,000 studies, and never have had to change our report findings due to IRS audit. Our reputation speaks for itself!
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Whether you are a CPA, financial planner, real estate broker, 1031 Exchange accommodator, general contractor, or a building owner, you should know the financial benefits of a cost segregation study. Cost Segregation Consultants has the team, the tools, and the track record to perform the highest-quality and most efficient cost segregation studies available.
A Cost Segregation Consultants cost segregation study will provide a precisely segregated report, thus enabling CPA’s to achieve the maximum legal tax benefits for their clients. We provide the necessary numbers for you to easily plug into your software and get your client on their way with their return; not to mention all of the tax savings you just helped them rack up!
CPAs and financial planners are frequently involved with cost segregation studies, but developers and general contractors can also be of great value when in comes to helping their clients.
Real Estate Professionals
The opportunities to increase cash flow from commercial real estate projects are endless. Cash flow is often one of the critical factors that investors consider in the decision to purchase property. By accelerating depreciation deductions through a cost segregation study, the property owner is able to significantly increase their cash flow. This is where the brokers come into play, suggesting the perfect opportunity to their clients about cost segregation.
Introducing cost segregation during the beginning of the real estate purchase process helps the owner more than if they were to wait until later to recover the costs. If a study is completed during the first year of ownership, it provides owners with additional cash that they can use for future investments, resulting in repeat business for the broker. Working together, CSC, the broker, and the client can make a win-win situation.
Cost segregation studies, as well as 1031 exchanges, are a useful tax tool available to commercial real estate owners. Through proper tax planning, both techniques can be used simultaneously to maximum the tax benefits.
Both tools are used to defer taxes and therefore improve cash flow. Cost segregation and 1031 exchanges are useful on every type of commercial property. Both techniques also encompass complex areas of tax law and necessitate the use of specialists, such as those employed by CSC.
1031 exchanges require a “Qualified Intermediary” to perform the transaction and ensure proper execution. This will also help in case there is an audit. Cost segregation studies require a knowledgeable engineering consulting firm, such as CSC, to perform and validate them. It is also required that those specialists work closely with the property owner’s accountant or another tax advisor.
These two methods should be used effectively and provide a great opportunity for the taxpayer to defer income taxes into future periods. This, in turn, maximizes cash flow in the present. In order to use cost segregation and 1031 exchanges together successfully, the property owner’s CPA must fully understand the tax laws of both tools and how they apply to the client’s individual investment strategy.