Have you built, purchased or renovated a building in the past 10 to 20 years? If your answer is "yes", it is likely you are paying too much federal income tax. Forsyth Wealth Management, Inc. works with commercial property owners (along with their CPA’s and/or their other financial advisors) to increase cash flow from constructed buildings, purchased properties and renovations by accelerating depreciation expense deductions.

Through what is called "cost segregation", the components of a building are reclassified into proper class lives according to the Modified Accelerated Cost Recovery System, case law and IRS revenue rulings.

If you own or lease a facility, the depreciation deduction is one of the most significant, but often overlooked opportunities to reduce the income tax liability. Whether you are buying, building or improving a building, we can help you maximize your income tax deductions through our in-depth cost segregation service.

The benefit of a Cost Segregation study lies in the timing of tax payments. Assuming a 35% Federal tax rate, an 8% discount rate, half-year convention, and no bonus depreciation, for every $1,000,000 of property reclassified from 39 years has a cumulative present value of tax deferral equaling approximately:

• $195,000 for 5-Year Property
• $178,000 for 7-Year Property
• $108,000 for 15-Year Property
• In other words, the benefit is approximately $.19 for every dollar reclassified to five years from thirty-nine years.

The first question most clients ask us is, “Can my accountant do this for me?” The answer is, “No, unless the accountant is a CPA, architect and an engineer that specializes in this field, and is willing to their studies.

IRS guidelines and over 1000 IRS revenue rulings and court cases provide the necessary guidelines for proper conduction of Cost Segregation studies.  Our Cost Segregation Specialists are experts in all of the above areas and have over a decade of experience in the field of Cost Segregation.  They know the ins and outs of not just of the construction project, but also of the accounting side, documentation, tax law, etc., with the assurance that your study will be fully compliant with the latest changes the tax law and court cases.

Cost Segregation is cost effective for buildings that cost $750,000 or more. Contact us for a free feasibility study at forsythwms@gmail.com or call 704-902-0972.