Do You Qualify for this Tax Code Secret?

by / Monday, 07 January 2013 / Published in General, iCORE

It could add up to big savings for you, as well as improved cash flow if you’re a property owner.

Most commercial properties from apartment buildings and day-care centers to office buildings and warehouses qualify for this tax secret.

This tax strategy allows owners and investors to accelerate the depreciation rate of their properties and to claim larger tax deductions for construction-related costs over a shorter period.

Signaling minimized taxes and potential catch-up depreciation allowing for retroactive refunds, this secret is a must-know in today’s financial world.

What is the secret & what are its advantages?

The secret is known in the IRS Tax Code as Cost Segregation: an established technique for deferring income taxes.

Because the benefit of cost segregation can be significant in amount, most knowledgeable real property owners utilize cost segregation as a routine step in the process of preparing their income tax returns.

In spite of the popularity of cost segregation, many real property owners are unclear about how it fits into tax law. It can be confusing.

A common perception is that cost segregation is a method that is an elective provision that the IRS considers to be an aggressive filing position. This perception frequently causes real property owners to avoid cost segregation and, in turn, guess what happens?

The property owners miss out on benefits that can be substantial.

A serious advantage of this secret is that owners can also benefit from potential catch-up depreciation allowing for retroactive funds.

Do you qualify?

You will find the information here in Zurich American Insurance Company’s informative white paper.

For Commercial Property owners and Leaseholders, there is also an IRS Tax Deduction for Energy Efficiency. Find out if you qualify for this as well.