Costs for items such as wiring, plumbing, flooring and lighting can often be sorted into different asset classifications and depreciated over a shorter period of time than the IRS allows for buildings. By assigning costs to classifications with shorter depreciable lives, additional depreciation might be allowed in earlier years, which results in significant tax savings. In some cases, additional savings can also be realized through reduced property, sales and use taxes and other state and local tax credits, incentives and abatements.
A cost segregation study might also reveal potential savings for past property acquisitions or construction activities. IRS regulations permit deduction of depreciation amounts that were not claimed in original property classifications but only when supported by a cost segregation study prepared by qualified professionals.
Williams-Keepers LLC’s experienced staff can conduct a cost segregation study for your business. WK uses its knowledge of tax laws and regulations to work with you, your project manager and contractors to identify items eligible for cost segregation.
To learn more about WK’s cost segregation services, please call (573) 442-6171 or (573) 635-6196 or e-mail email@example.com.