Minneapolis Cost Segregation

Did you purchase or renovate a building recently or are you planning to do so?

What is a Cost Segregation Study?

A cost segregation study identifies assets and their costs related to real estate purchase or reconstruction in Minneapolis and classify those assets for federal tax purposes.

These studies are one of the most valuable tax saving strategies available for commercial real estate owners, leaseholders and others.

Benefits of a Cost Segregation Studies

In a typical cost segregation study, between 15% and 45% of a building’s costs can be reclassified to shorter-life assets, depending on the type of facility. For a $1 million project, this can equal between $30,000 and $90,000 in increased cash flow. This allows further investment or even quicker repayment of the loan on the building.

Many real estate investors, who already own, construct, renovate, or acquire property – especially property worth more than $1 million or improvements that cost more than $500,000 – can benefit from a cost segregation study.

To learn more about a cost segregation study and receive a free analysis of your property, please contact us.