Get the Most Tax Savings with Cost Segregation

ConstructionIf you are a contractor, chances are you are always looking for ways to standout in the market as you bid for new business. Consider offering cost segregation as part of your bid: cost segregation can save your clients thousands of dollars in taxes and it can be easily included as part of your construction services.

Cost segregation is a well-established, underused tax strategy that maximizes deductions for accelerated depreciation from a commercial property. This produces thousands of dollars in tax savings for building owners. Cost segregation applies to both newly constructed buildings as well as existing buildings being renovated. Compared to the tax savings realized, the cost is modest: returns of 15 to 1 and higher are common.

Two recent examples demonstrate this service’s value. Cost segregation on:

  • A newly built $2.6 million building produced $131,000 in tax savings
  • An $863,000 renovation and expansion project yielded tax savings of $76,000

To get the most tax savings, cost segregation is best done by experts experienced in both taxes and engineering. Notably, it is easily integrated into any construction activity. If your firm is interested in incorporating this valuable client service into your construction methods, AssuredPartners NL can help. To learn more, visit AssuredPartners NL Tax & Energy Solutions.

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