Cost Segregation Company in Phoenix, Arizona
A cost segregation analysis is a strategic tax planning tool that enhances your immediate cash flow by postponing tax payments. By conducting a cost segregation study in Phoenix, you could potentially deduct up to 30-35% of your property's initial acquisition cost in the first year!
This is possible because depreciation reflects the declining value of a building as it ages. In reality, your building consists of multiple individual elements (like lighting systems, HVAC units, etc.), each of which degrades over time.
However, these elements are categorized differently from the entire building, which is typically depreciated over 27.5 or 39 years. Individual components are often allocated shorter depreciation periods of either five or 15 years. This accelerates the depreciation benefits, particularly in the early years. No matter if your real estate property in Phoenix is for residential or commercial use, you have the flexibility to spread out this expense over a period of 27.5 or 39 years.
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Explore your property's potential with our cost segregation services in Phoenix. Contact ETS today for a detailed analysis.
Frequently Asked Questions
How Much Depreciation Can Be Accelerated for Your Owned or Leased Property in Phoenix?
What Is the Best Time of the Year to Do a Cost Segregation Study?
Anytime—as long as you commission your cost segregation study before a construction rehab. Because cost segregation sets a baseline for the original purchase, it’s easier for a cost segregation company in Phoenix and the IRS to set that baseline by performing the study before the rehab, with an engineer documenting the reclassification, before the improvements are made. It’s harder to document your rehab costs after you’ve renovated.
How Much Should a Cost Segregation Study Cost?
The fee for a cost segregation study in Phoenix should be between $3,000-$12,000. However, the capital outlay is more than worth it, considering you can save hundreds of thousands, if not millions, in taxes by commissioning a study. The ROI is amazing.
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