Cost Segregation studies should be initiated as early in the construction
process as possible to obtain maximum benefits. Pre-construction
tax-planning helps owners dramatically increase cash flow by showing
how certain building components can be designed to qualify
for accelerated depreciation.
In order to capitalize on these cash flow benefits, CRS will meet
or conference with your design and construction team in order to
assist them in understanding how their decisions affect your tax
position. We will also show them how to track applicable costs in
the most efficient manner. Typically, our engineers will spend less than an hour with your architect before the
design of the building begins, so that we can show them how to identify
a larger percentage of the building's components for accelerated
depreciation.
The general contractor has two things in place that are essential
to a cost segregation study – a relationship with the project
owner and full access to the cost information needed to complete the
study. What the contractor is missing is the cost segregation expertise
to complete the tax side of the study.
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