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Engineered Tax Services Helps Building Owners Increase Cash Flow with Cost Segregation
Engineered Tax Services Helps Palm Beach County and National Businesses and Home Owners Increase Cash Flow with Cost Segregation
Property eligible for cost segregation includes buildings that have been purchased, constructed, or remodeled since 1987. ETS conducts a formal engineering based study that is typically cost-effective for buildings purchased or remodeled at a cost greater than $750K. However, using software can also make sense for residential property with a cost basis as little as $150K. A cost segregation study is most efficient for newer buildings, but it can also discover retroactive tax deductions for older buildings, which in turn, generates significant short benefits due to "catch-up" depreciation.
What is Cost Segregation?
A cost segregation study is a federal income tax tool that increases near term cash flow in the form of a deferral. The ETS team does this by utilizing shorter recovery periods to accelerate the return on capital from clients' investment in property. Whether newly constructed, purchased or renovated, the components of a building may be properly classified through a cost segregation study into shorter recovery periods for computing depreciation. The study carves out (into 5, 7, and 15 year lives) certain qualifying portions of a building that are normally buried in 39 or 27.5 year categories.
Through ETS's next-generation cost segregation studies, the team works to discover tax savings and to increase cash flow through reclassification and depreciation of property. ETS provides a detailed review as part of the reporting process and works together with the IRS and CPA firms for minimal disruption to clients.
More About Engineered Tax Services
ETS is a nationally licensed engineering firm which is headquartered in West Palm Beach, FL with 15 offices nationwide and over 140 employees and consultants. ETS works with many of the Top 100 CPA firms and Fortune 500 companies nationwide. You can learn more at http://www.EngineeredTaxServices.com.