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Old 07-19-2009, 01:54 AM
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What are the benefits of a Cost Segregation Study?

There are appear to be some considerable financial and tax benefits of conducting "Cost Segregation Studies". Many Financial and Cost Segregation Experts have stated that these potential savings will vary depending on taxpayers "specific expenditures, business operations, and other financial actors." But, these experts agree unanimously that whenever a Cost Segregation Study is undertaken, most facilities usually derive the following benefits such as:

1. Possiblity of an increased cash flow.
(The increased cash flow result as a consequence of accelerated federal tax depreciation of construction-related costs.)

2. Possibility of a substantial reduction in the corporate income taxes.
(These reductions in the corporate income tax occurs due to the accelerated federal tax depreciation, that result in lower taxable income.)

3. Possibility of a reduction in state and local real estate as well as personal property taxes.

4. Possibility of a reduction in real estate taxes by shifting value from real property to personal property.

5. Possibility of allowing a corporation to claim “catch-up” depreciation on assets that have been previously misclassified as real property.
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