Archive for the ‘Commercial Property’ Category
Owners of the commercial properties London and other parts of the world particularly in United States should be aware of the so-called Cost Segregation. This is actually a beneficial process that would lower the taxes that they owe because they have to speed up the depreciation of their commercial properties.
Usually, investors have to wait for 27 and a half to 39 years before the value of their commercial property depreciates. However, during the cost segregation it would only take five to seven or sometimes up to 15 years, so that the value of the commercial properties would immediately depreciate. Therefore, the owner of these profitable real estate investments would have big reduction when it comes to the taxable income of the property since a big value of it depreciated.
With the help of the cost segregation, those who own these depreciated commercial properties would get to improve their current cash flow. The financial benefits of the process can be used immediately since the value already lowered along with their taxable income as well.
However, a commercial property is eligible for the cost segregation if it was remodeled, constructed or purchased after January 1986. Owners must also keep in mind that it is best to have their commercial properties studied while they are still making improvements on the real estate property.