CREPN #57 Cost Segregation Study with Bill Smith

Commercial Real Estate performance can be greatly improved using a Cost Segregation Study.  A better performing property carries a greater tax burden.  To off set the taxes due, commercial property owners looking for more deductions are turning to cost segregation study's.   

To get a better understanding of how cost segregation works, I spoke with Bill Smith with ELB Consulting LLC.  

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Companies have been accelerating the depreciation of components for years.  Hospital Corporation of America (HCA) brought a lawsuit in 1997, and the IRS acquiesced. This set the stage for IRS guidelines formally established in 2004.  Cost Segmentation is not a tax loop-hole, but a recommended practice by the IRS.

Bill compares cost segregation specialist to treasure hunters, “in that we find significant cash in your walls, floors, ceiling, etc. in the form of tax deductions. By breaking a building into it component parts, we reclassify certain components from 39 or 27.5-year property to 5, 7 or 15-year property, increasing deductions and therefore improving cash flow.”

For a Cost Segregation Study Benefits Summary click: https://qc115.infusionsoft.com/app/form/cost-segregation-study

For more information go to:www.elb360.com

contact Bill Smith @bill@elbcostseg.com