Property owners that build remodel, expand, or purchase a facility often overlook cost segregation provisions that could help defer federal and state incomes taxes—and avoid paying taxes sooner than required.
Cost segregation is a tax-deferral strategy that frontloads depreciation deductions into the early years of facility ownership. Segregating the cost components of your buildings into the proper asset classifications and recovery periods could result in significantly shorter tax lives of five, seven, and 15-year spans—rather than standard 27.5 or 39-year depreciation periods.
Deferring taxes with these strategies could help put cash back into your business so you can focus on the business goals that matter most to you.