I had the opportunity to meet with Susan Nichols  ( Susan.Nichol@cpconsultant.com ) who is a representative for Commercial Property Consultants (CPC), a cost segregation firm based in Phoenix, AZ.   So what is cost segregation and how does it make you money?

Cost segregation may help owners of commercial real estate save significantly on their federal income taxes. Cost Segregation is a tax planning tool that determines how quickly an owner should be depreciating the property on his/her income taxes — five years, seven years, 15 years, 27.5 years or 39 years. The Internal Revenue Service allows owners of commercial properties to accelerate depreciation on their real estate, which results in reducing the property owner’s taxable income levels.

A cost segregation study is an in-depth analysis of the costs incurred to build, acquire or renovate a real estate holding. The primary goal of a cost segregation study is to identify all construction-related costs that qualify for accelerated income tax depreciation. Small or large, your business can save money with a cost segregation study, typically many times the amount you invest.

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