Details about cost segregation study
A number of factors should be considered while conducting a cost segregation study of a property. This includes- evaluation of the property by a group of qualified engineers, detailed analysis of the construction plan of the properties, and review of all the financial expenses. This study is done by professionals in property development including carpenters, architects, developers, electricians, and builders.
How cost segregation study is beneficial?
When you hear about cost segregation, the following questions come to your mind- why to get into such a complicated thing? Why not depreciate the whole building instead of the individual components? Why to pay for extra costs related with assessing the property?
It is true that you need to pay extra money for cost segregation and it also comes with some risks. But cost segregation study is worth your money because it is a powerful tax shield for the companies who have recently made investments in real state purchase. By depreciating a part of the new purchase over a shorter depreciation period can result in saving huge amount of money for the businesses. Also, cost segregation defers the taxes up to later years.
Hence, it can be concluded that cost segregation study is very beneficial for new business.
MR valuation 