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The complexity of IRS rules and
regulations as relates to cost segregation
involves not only specialized tax law
knowledge, but construction engineering
expertise such as the ability to read
blueprints and building specifi cations. Even
if your accountant understands the basics
of cost segregation, without contractor/engineer
expertise and a deep understanding
of the relevant tax law changes, IRS Private
Letter Rulings and court cases, valuable tax
benefi ts will certainly be missed. IRS cost
segregation audit guidelines clearly state
that "a study by a construction engineer is
more reliable than one conducted by someone
with no engineering or construction
background." It is extremely unlikely that
more than a small fraction of what an owner
is entitled too will be identifi ed without
a cost segregation specialist involved.
What else can I help you with?
How do cost segregation services help companies with budgeting?
Cost segregation gives a company a clear picture of how they can depreciate their assets. You need to know this in order to know exactly what you have to budget.
Why should a company use cost segregation software?
Cost segregation can save a business money by helping to maximize tax advantages. Basically it helps you separate your personal property from real property for IRS purposes. The IRS does recognize and approve of these practices too.
What effect would inflation have on a company's cost of capital?
What effect would inflation have on a company's cost of capital
What does mean by out source or insource?
There are many jobs in a company which could be done at less cost to the company if they simply out sourced them to another company. For example, rather than Ford setting up a tire manufacturing plant to fit all the various models of its cars and trucks with tires; it is cheaper to deal with a company who specializes in the manufacture of tires. Thus, they save the cost of setting up a plant, hiring employees, acquiring raw materials, etc, all which would increase the per unit cost of the tire which would add to the cost of the vehicle. That is a good example of outsourcing. I've never heard of the term in sourcing; but it would simply be the opposite, i.e. rather than going outside the company, one would use in-house talent to do the job.
How much should I expect to pay for cost segregation services for my real estate investment?
There are several companies across the country that specialize in cost segregation and I would recommend contacting one of them. The IRS also may provide a listing of those close to you.
Where can I find more information on cost segregation services?
There are a variety of websites that offer information on cost segregation services. Have a look at http://www.uscostsegregation.com/ AND http://www.costsegserve.com/
Is cost segregation an effective audit technique?
Cost segregation can help to ensure that audits are done properly. You can also get data that can help to ensure the audits are proper.
Do cost segregation laws include improvements to real property?
Yes, cost segregation laws can include improvements to real property. Improvements that are considered to be part of the building structure may be categorized differently than those that are considered personal property for the purpose of depreciation. It is important to consult with a tax professional to accurately classify improvements for cost segregation.
What is the process of the Cost Segregation Study?
The process of the Cost Segregation Study is one of identifying and reclassifying personal property assets to enable to shorten the tax depreciation time frame.
What is the benefit of cost segregation services?
The biggest benefit of cost segregation services is that is creates money for the properties that implement it. This is done by helping to reduce the owner of the property's taxable income.
How do cost segregation services affect tax payers?
Cost segregation, done properly, can reduce tax liability on real estate. It can also increase cash flow on investment properties.
If Archie Comics Publications was for sale How much would it cost to buy the company?
It would probably cost 50 million.
