Cost Segregation and Deprecation Analysis
Cost Segregation and Depreciation Analysis are arguably the most important tax planning strategies for business owners. The goal of a cost segregation study is to get an accurate valuation of your business property- including the building, land, improvements, and all the other assets of your business.
When you purchase a business, it is important to understand what exactly you are buying. When you purchase property, you are buying everything- the interior, exterior, and the land. When assets are being purchased in addition to the property- you maybe purchasing many assets with varying useful lives for deprecation purposes.
Once we have a full picture of all the components that are being purchased, we can run different simulations on deprecation, which will have substitutional tax benefits.
This is an area where many business owners fail to plan. It is an area where we provide the most value to our clients. When purchasing a business, purchasers are so focused on closing on the property, they forgot to plan for this step. It is by far the most crucial step for tax planning purposes.