Add Up Your Savings on New or Past Projects with the Cost Segregation Savings Calculator
As a real-estate investor or developer, you already have the innate ability to spot a great deal. However, you may not know the ins and outs of cost segregation, the tax strategy that can significantly improve your cash flow and maximize your ROI when buying, constructing, or renovating your commercial buildings.
A Cost Segregation Savings Calculator will help you get started. This tool helps you understand how much money you could save by leveraging IRS-approved tax strategies that accelerate your depreciation for a large portion of your property – even if you built, purchased, or improved your property 20 years ago.
Ready to learn how much you can save? Start using the Cost Segregation Savings Calculator now.
What Is Cost Segregation?
Cost segregation is an often overlooked, but highly valuable tax strategy that separates your building’s property into the fixed components classified as “real property” versus the removable or industry-specific components classified as “personal property.”
By segregating assets into “real” vs. “personal” property, you can accelerate your deductions on a large portion of your commercial building. This empowers you to accurately claim deductions in 5, 7, or 15 years on those personal property assets, instead of following the 39-year, straight-line depreciation required on commercial building real property.
Using the Cost Segregation Savings Calculator
The Cost Segregation Savings Calculator is easy to use. After you answer 6 simple questions, you will get the information you need to see where you could save big on your commercial property’s segregated tax deductions.
Once you have your calculated number in hand, we recommend you choose one of these top approaches to your tax depreciations:
- The “Plan Early” Approach
With the “Plan Early” approach, you can discover potential tax savings for a building project you haven’t yet started. To capitalize on these savings, you can turn to Tax Engineering, which focuses you on early construction or renovation choices that maximize your tax benefits without sacrificing your design integrity.
This approach gets you working immediately with a multidisciplinary team of engineers and depreciation experts. They will collaborate with your architect to help you integrate more personal property into your building, such as removable walls, cabinetry, light fixtures, or design elements.
- The “Recoup Paid Taxes” Approach
You don’t have to plan early to take advantage of cost segregation. In fact, investors often commission a Look-Back Study from tax depreciation experts to recoup overpaid taxes from the past 5, 10, 20, 25, or even 36 years.
This approach does not require you to amend your tax returns. It enables you to claim unclaimed depreciation immediately based on IRS-supported reclassification of personal property that was erroneously counted as real property in prior tax years.
What Kinds of Assets Count as “Personal Property”?
When you use the Cost Segregation Savings Calculator, you are likely to be surprised by the results. Most real estate investors don’t realize how much money they could be saving by accurately and appropriately reclassifying their commercial building assets.
Take a look around your building today. You are likely to find a lot of “personal property” assets, including:
- Built-in cabinetry
- Flooring and wall coverings
- Interior, removable walls
- Specialty HVAC systems
- Telecommunications and network systems
- Security systems and audio-visual systems
- Parking lots, sidewalks, and fencing
- Landscape and hardscape
If you deducted $100,000 of these expenses this year as previously unclaimed expenses, you would improve your cash flow right now. You would also save thousands of dollars in taxes in upcoming years, as compared to taking the 39-year straight-line depreciation.
Find Out How Much You Should Be Saving
Considering the risks you take as a real estate investor or developer, you deserve to maximize your deductions. You deserve to reap the greatest ROI possible.
Serving clients since 1985, Paragon International, Inc. provides independent, impartial and accurate cost segregation analyses, and property valuations and appraisals to assist in and support decisions related to taxes, risk management, investment, financing and corporate planning. Our consultants have extensive fixed asset experience – they’re fixed asset experts. Because of that we are able to offer a unique combination of irreplaceable human resources and advanced technology. We have specialists experienced in valuing closely-held securities, patents and other intangible assets, business enterprises, buildings, equipment and real estate. In addition, Paragon provides complete inventory and asset management services and solutions, including software customization and training, barcode labels and scanners, and tailored inventory services such as data conversion and integration, asset inventories, asset policies, cost reconciliation, and appraisal services. Contact Paragon International to discover how we can help you.