Cost Segregation Studies from Scarpello Consulting Identify Significant Hidden Tax Savings
Cleveland, OH, February 19, 2012 --(PR.com)-- Scarpello Consulting has significantly improved much needed cash flow for businesses and organazations in the health care industry and is now offering a free cost segregation benefit analysis.
Cost Segregation studies identify significant hidden tax savings.
Residential, Assisted Living and Skilled nursing for-profit facilities can significantly enhance cash flow and minimize income tax liability by implementing a cost segregation study.
What is a Cost segregation study? Cost Segregation is a engineering-based approach to identify assets within a building that can be reclassified into a much shorter depreciation recovery period than the building itself. Many asset components within these properties may be depreciated over a 5, 7 or 15 year recovery period versus a straight-line 39 year commercial or 27.5 residential recovery period. This accelerated depreciation allows the taxpayer to reduce current income tax liability and significantly enhance cash flow improving their bottom line.
This IRS approved tax strategy allows investors to take advantage of tax deductions today that they would normally receive over many years. Typically, within senior living facilities many assets fall into a personal property classification and may be depreciated over a five year life. Examples of these assets include but are not limited to, carpeting, wallpaper, electrical (dedicated to decorative lighting, kitchen equipment hook ups, and other types of equipment) as well as other non-structural components within a building. Land improvements such as parking lots, exterior lighting, landscaping, fencing, sidewalks, and curbs can be depreciated over a 15 year life. Accelerating these components can significantly reduce state and federal income tax liability providing a better net cash flow position.
Why can't a CPA perform a cost segregation study? Although highly endorsed by the IRS, cost segregation studies require both tax and engineering expertise. Most CPA firms do not have the in-house engineering capabilities necessary to identify and quantify the items accurately and in a manner acceptable to the IRS.
Who can benefit from a cost segregation study? All properties that have been constructed, purchased or renovated since 1987 may qualify for this tax benefit. To determine if a cost segregation study is appropriate the following circumstances would apply:
* Is the cost of the building at least $750,000?
* Was it purchased, constructed or renovated since 1987?
* Are clients planning on retaining property for the next few years?
* Do clients have net income that is being taxed?
It's not too late. Cost segregation studies may be performed on properties acquired this year or properties that are currently owned as far back as 1987. The IRS allows a taxpayer to file form 3115 (application to change accounting method) and receive a "catch up" tax deduction in the current year without amending prior returns. This deduction can be applied to current income tax liability significantly reducing the amount of income taxes owed this year.
Recent actual client savings. A client with a $10M newly constructed assisted living facility generated $890,000 in tax savings over the first five years.
A client with a $4M senior living facility captured a $190,000 1st year tax benefit on an existing facility through a "look back" cost segregation study.
Here's how to get started. A complimentary benefit analysis can be performed demonstrating the cash flow enhancement client will receive through a cost segregation study.
The proper segregation of costs requires the knowledge of construction costs and techniques as well as related tax law. The companies core group, formerly with PricewaterhouseCoopers, LLP has extensive estimating, engineering and construction experience in the senior living and healthcare industry. For over ten years, Scarpello Consulting has provided cost segregation studies for CPA firms and their clients nationally providing a turn-key deliverable meeting all IRS guidelines. Their client base includes large publicly traded entities as well as small privately held single location facilities.
For more information and how client can receive a no cost benefit analysys please contact Jerome Amsden at 216-472-2572 or e-mail jeromeatscarpelloconsulting.com
You can also visit website at scarpelloconsultingdotcom
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Cost Segregation studies identify significant hidden tax savings.
Residential, Assisted Living and Skilled nursing for-profit facilities can significantly enhance cash flow and minimize income tax liability by implementing a cost segregation study.
What is a Cost segregation study? Cost Segregation is a engineering-based approach to identify assets within a building that can be reclassified into a much shorter depreciation recovery period than the building itself. Many asset components within these properties may be depreciated over a 5, 7 or 15 year recovery period versus a straight-line 39 year commercial or 27.5 residential recovery period. This accelerated depreciation allows the taxpayer to reduce current income tax liability and significantly enhance cash flow improving their bottom line.
This IRS approved tax strategy allows investors to take advantage of tax deductions today that they would normally receive over many years. Typically, within senior living facilities many assets fall into a personal property classification and may be depreciated over a five year life. Examples of these assets include but are not limited to, carpeting, wallpaper, electrical (dedicated to decorative lighting, kitchen equipment hook ups, and other types of equipment) as well as other non-structural components within a building. Land improvements such as parking lots, exterior lighting, landscaping, fencing, sidewalks, and curbs can be depreciated over a 15 year life. Accelerating these components can significantly reduce state and federal income tax liability providing a better net cash flow position.
Why can't a CPA perform a cost segregation study? Although highly endorsed by the IRS, cost segregation studies require both tax and engineering expertise. Most CPA firms do not have the in-house engineering capabilities necessary to identify and quantify the items accurately and in a manner acceptable to the IRS.
Who can benefit from a cost segregation study? All properties that have been constructed, purchased or renovated since 1987 may qualify for this tax benefit. To determine if a cost segregation study is appropriate the following circumstances would apply:
* Is the cost of the building at least $750,000?
* Was it purchased, constructed or renovated since 1987?
* Are clients planning on retaining property for the next few years?
* Do clients have net income that is being taxed?
It's not too late. Cost segregation studies may be performed on properties acquired this year or properties that are currently owned as far back as 1987. The IRS allows a taxpayer to file form 3115 (application to change accounting method) and receive a "catch up" tax deduction in the current year without amending prior returns. This deduction can be applied to current income tax liability significantly reducing the amount of income taxes owed this year.
Recent actual client savings. A client with a $10M newly constructed assisted living facility generated $890,000 in tax savings over the first five years.
A client with a $4M senior living facility captured a $190,000 1st year tax benefit on an existing facility through a "look back" cost segregation study.
Here's how to get started. A complimentary benefit analysis can be performed demonstrating the cash flow enhancement client will receive through a cost segregation study.
The proper segregation of costs requires the knowledge of construction costs and techniques as well as related tax law. The companies core group, formerly with PricewaterhouseCoopers, LLP has extensive estimating, engineering and construction experience in the senior living and healthcare industry. For over ten years, Scarpello Consulting has provided cost segregation studies for CPA firms and their clients nationally providing a turn-key deliverable meeting all IRS guidelines. Their client base includes large publicly traded entities as well as small privately held single location facilities.
For more information and how client can receive a no cost benefit analysys please contact Jerome Amsden at 216-472-2572 or e-mail jeromeatscarpelloconsulting.com
You can also visit website at scarpelloconsultingdotcom
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Scarpello Consulting
Jerome Amsden
216-472-2572
Jerome Amsden
216-472-2572
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