Cost Segregation

Tax saving opportunity!

Finding new ways to reduce tax liabilities and enhance cash flow is a top priority for every corporate manager and executive. Unfortunately, opportunities to have an impact are very rare. However, if your company has recently purchased, developed, or improved leased commercial property, you may be able to “discover” new tax saving opportunities through a cost segregation study. While the rules and regulations governing these studies are complex, our firm is able to help you leverage this opportunity.

What is a Cost Segregation Study?

A cost segregation study identifies the assets and costs of your commercial real estate or construction project and classifies them for federal tax purposes. Traditionally, most will classify assets (electrical, mechanical, and plumbing features) on a 39-year depreciable life schedule providing a consistent tax benefit. However, through a cost segregation study, these same assets are re-classified with a 5, 7, or 15-year depreciable life schedule using accelerated methods. This allows a company to depreciate assets in a new or existing structure in the shortest amount of time under current tax laws. The result is less time to realized tax savings.

The Process

Hanson & Company conducts an investigation of your project relying on a team of accounting, construction, and engineering professionals to identify and reclassify assets as permitted. Our process includes:

  • Review of Architectural Blueprints

  • Identification of Assets Qualifying for Reclassification

  • Creation of Detailed Asset Descriptions & Functions

  • Documentation of Assets Available for Reclassification

  • Report Preparation

Contact Us

Tax compliance and planning can be a complicated process that requires the assistance of a seasoned professional.  For additional information on our tax services contact us at 303-388-1010 or fill out a contact form here to learn how we can help.

 

The latest from Hanson & Co.

Tax Incentives Extended for 2020

Through the closing weeks of 2019, many Denver business owners were focused on wrapping up year-end items, assessing performance, refining goals and setting new benchmarks. Many were focused on analyzing the company’s expenses, revenues and overall financial position to create the budget for 2020.

DOL Issues Final Overtime Rules

Dedicated employees who commit to working hard to complete a project, meet increased production demands and drive innovation should be rewarded. In addition to their base compensation, other benefits such as retirement plans, health, dental and year-end bonuses are often given. The Department of Labor (DOL) recently issued, Final Rule – Overtime Update, which will impact Denver area employers.

Tax Saving Opportunity for Denver Businesses

As year-end quickly approaches, many Colorado businesses are investigating opportunities to take advantage of tax-saving strategies to reduce tax liabilities. Since the passage of the Tax Cuts and Jobs Act of 2017 (tax reform), and lowering of the overall corporate tax rate, many of the traditional tax credits and deductions have been phased-out. This has left many searching for incentives to leverage to optimize their tax position.