Have you built, purchased or renovated a building in the past 15-20 years? If your answer is yes, it is likely  you are paying too much federal income tax.

SourceCorp works with commercial property owners and their CPAs from across the nation to increase cash flow from constructed buildings, purchased properties and renovations by accelerating depreciation expense deductions.  Ask us about the new 2008 Bonus Depreciation!

Whether you are buying, building or improving a building, we can help  reduce your income tax liability through our in-depth cost segregation service. Give us a call today and schedule your Free initial analysis.

The benefits of cost segregation, resulting from a deferral of tax payment and accelerated depreciation, are easy to demonstrate. For each dollar that is reclassified into a 7-year class life, the taxpayer realizes from $ 0.15 to more than $0.20 in the cumulative present value of taxes deferred. Similarly, For each dollar that is reclassified into a 5-year class life, the taxpayer realizes from $.19 to more than $.23 in the cumulative present value of taxes deferred. These are approximations and the exact amounts depend on factors such as the tax rate, discount rate and whether the subject property qualifies for bonus depreciation.

 
Example- Take, for instance, a $10,000,000 office. It has a 35% tax rate and an 8% discount rate. If 8% of the building is reclassified into a 5-Year class life, 1% into 7-Year, and 8% into 15-Year, the cumulative present value of taxes deferred, using the half-year convention, is over $261,000. It is important to note that this is only an example and the actual percentages of reclassified property will vary greatly depending upon many factors such as the use of the building, the quality of finish out as well as tax and discount rates.