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  • Services
    • Tax Preparation
    • Bookkeeping
    • Payroll
    • Wealth Planning
    • Cost Segregation
    • Business Strategy
  • Worksheets
    • Engagement Letters >
      • Privacy Statement
      • Individual Engagement Letter
      • Business Engagement Letter
      • Tax Credit Form
      • 2020 Questionnaire
    • Tax Organizers >
      • Individual Organizer
      • Business Organizer
      • Rental Organizer
  • Resources
    • Refund Tracker
    • Deduction Lists >
      • Business Owner
      • Contractors
      • Daycare
      • Farms
      • Medical Professional
      • MLM/Direct Marketing
      • Realtors
      • Rental Property
    • Finance Blog
    • Tax Reminders
  • About
    • Contact
    • Your Team >
      • Christopher Anderson
      • Kathy Anderson
      • Heather Prothero
      • Jeremy Anderson
      • Chris Katsanevas
      • Jacob Martin
      • Brittany Anderson
      • Lissa Adams
      • Diana Anderson
      • David Jensen
      • Thora Eagar
      • Lina Ansons
      • Kelly Southworth
  • SmartVault

Cost Segregation

What is Cost Segregation?

Cost Segregation is a little known tax strategy for people who own commercial property. When you purchase a commercial property, the standard process is to depreciate it over 39 years. That means instead of taking the purchase price all at once, you must deduct 1/39 of the cost every year for 39 years.

Cost Segregation allows the owner of the building to divide the building into the various components. Instead of depreciating the entire building for 39 years, some parts are depreciated over less years. For example, floor coverings would be depreciated over 5 years instead of 39 years.

By breaking down the components and depreciating each by how long they really last, you can deduct a larger amount each year and as you replace items, you can depreciate them over the shorter period of time. This is a great way to save on your taxes.

​We can help you set up cost segregation the maximize your deductions.
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​Securities sold through CoreCap Investments, Inc., a registered broker-dealer and member FINRA/SIPC; advisory services offered by CoreCap Advisors, Inc., a registered investment advisor. Soulence, LLC and CoreCap are separate and unaffiliated entities.