Cost Segregation - Tax Deductions
“Collecting more taxes than is absolutely necessary is legalized robbery.” - Calvin Coolidge, 13th President of the United States
In addition to the numerous tax deductions the Internal Revenue Service (IRS) allows, research indicates that most U.S. taxpayers do not claim all deductions to which they are entitled.
Some of the tax deductions business owners can claim fall under categories such as charitable contributions/donation deductions, medical and dental deductions, moving expense deductions, deducting job costs, travel and entertainment expense deductions, and casualty and theft losses, depreciation and involuntary conversion deductions.
Most people are not aware of all business deductions and miss out on various claims. To this end, it is important to understand the theme for deductions for businesses. When considering whether an expense is a deduction, you should ask yourself the following:
1. Did it occur as part of my small business? 2. Was it an ordinary expense associated with my business? 3. Was it a necessary expense?
Year 1 federal income tax savings are typically at least two times the cost of a CSS. In many cases they are five to fifty times the cost of the study. The cost segregation study is only required once. Its cost is not recurring, but the benefits are recurring during the term of property ownership. A CSS can also materially reduce local property taxes by separating real and personal property for newly constructed properties.
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