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Cost segregation is a tax planning strategy that can help businesses and individuals reduce their federal income tax liability. By segregating costs into different categories, businesses and individuals can deduct more of their expenses in the current tax year, which can lead to significant tax savings.Benefits of Cost Segregation
There are a number of benefits to cost segregation, including:
Increased deductions: By segregating costs into different categories, businesses and individuals can deduct more of their expenses in the current tax year. This can lead to significant tax savings.
Reduced depreciation: Cost segregation can help businesses and individuals reduce their depreciation expense, which can lead to higher profits.
Improved cash flow: Cost segregation can help businesses and individuals improve their cash flow by deferring some of their tax liability to future years.
Increased asset value: Cost segregation can help businesses and individuals increase the value of their assets by allocating a greater portion of the cost to depreciable assets.
Cost Segregation Process
The cost segregation process involves reviewing a business's or individual's assets and segregating them into different categories based on their useful lives. Once the assets have been segregated, a cost segregation study is prepared that outlines the depreciation schedule for each asset.
How to Work with Corporate Tax Advisors
Corporate Tax Advisors is a team of experienced tax professionals who can help businesses and individuals with all of their cost segregation needs. We have a proven track record of success in helping our clients achieve significant tax savings.