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Commercial Building

Cost
Segregation

TAX INCENTIVES FOR COMMERCIAL REAL ESTATE

Increase your cash flow and reduce your tax liability today by partnering with Taxster to conduct a Cost Segregation study. The studies can be preformed on new construction, remodels, expansions, or new real estate purchases.

 

In essence, the study allows property owners to defer taxes by proactively realizing depreciation deductions. By breaking down the cost components of a structure and appropriately classifying the asset, property owners will benefit from reduced tax lives.

 

For example, through cost segregation the standard 39-year tax life becomes a

5, 7, or 15 - year tax life. Assets with class lives of 15 years or less are then available for immediate bonus depreciation, resulting in increased cash-flow now.

 

Cost Segregation studies are most valuable when performed in a timely manner, ideally within the first year of construction or purchase. Yet, Taxster's simplified approach enables studies to be completed years after the end of construction or date of purchase.

Industrial Building

Examples of Potential Savings

Gas Station .................. 75-100%
Apartment .................... 20-40%
Manufacturing ............ 20-80%
Restaurant .................... 25-45%
Warehouse ................... 20-30%

Strip Mall ....................... 20-80%
Hotel ................................ 30-40%
Vacation Rental ........... 25-45%
Medical Office ............. 20-40%
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