If you are planning to get a cost segregation study done in the future, it's wise to get an abandonment study done right after purchase. Why should you do this? Find out here.
ATTENTION COMMERCIAL PROPERTY OWNERS: GET AN ABANDONMENT STUDY DONE AFTER PURCHASE!
What is an Abandonment Study?
An abandonment study is a very detailed engineering analysis of building components. These studies are used to estimate individual component costs that are being retired or abandoned. Abandonment studies are usually performed when renovations or improvements are made during the normal ownership period of buildings, properties, or tenant improvements. According to the IRS, the study can be significant. Also, the data from the study could support insurance savings or claims if there are earned losses.
Why Is It Important to Get One Done Before Renovating Commercial Property?
It is important to have an abandonment study before renovating commercial property because it provides the details and documentation necessary to write off abandoned assets that were once buried in the cost of the building. A study can generate significant additional depreciation for the commercial property. Because depreciation is increased, substantial tax reduction can be affected. The study allows demolished assets to be deducted in the year earned.
What’s Documented in An Abandonment Study?
An abandonment study identifies the value of the demolished or renovated property.
Why Will a Detailed Abandonment Study Improve Your Overall Tax Savings with Your Cost Segregation Study?
The combination of this study with a cost segregation study can help to maximize the depreciation available on 100% of the building components. This leaves no mystery when uncovering qualifying abandonment assets.
Where Can You Find Details About Contracting an Abandonment Study?
Engineered Tax Services (ETS) is a leading specialty tax firm in the United States in the abandonment study and cost segregation areas. That's because our team of tax experts and engineers are dedicated to cost segregation and abandonment studies – and have prepared reports for thousands of clients.
When You Work with ETS Tax Experts, You Get:
- Over 100+ years of combined experience
- Fully circular 230 compliant
- Experience from Fortune 100 companies to our great small businesses
- Broad service offerings to maximize client ROI
- Completing over 200 engineering studies monthly
- ETS employees – the top tax attorneys, CPAs, engineers, scientists, Congressmen, and Senators in the United States to deliver the best benefits in compliance with IRS standards
For a free consultation, please call (800) 236-6519.
