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.
Employee Parking Expense Deduction Disallowance
The Tax Cuts and Jobs Act of 2017 (tax reform) resulted in many changes designed to make the tax code easier to understand, compliance less complex and reduce overall business taxes.
Amended Tax Return Essentials
From time to time, Denver area business owners uncover an error on their business or individual tax return. This can happen when a review of prior year returns reveals that credits or deductions were missed which would entitle the taxpayer to an increased refund.
Key Details on Qualified Opportunity Zones
When tax reform, known as the Tax Cuts and Jobs Act, was signed into law in December of 2017, it ushered in significant changes to the tax code. For individuals there were many including as an increase in the standard deduction, repeal of the personal exemption, changes in tax brackets and expansion of the child tax credit.