Maximizing ROI: Why Strip Malls and Cost Segregation Make a Perfect Match
Strip malls, with their diverse mix of retail tenants, have long been a popular investment choice for savvy real estate investors. Their potential for steady rental income and capital appreciation makes them an attractive asset class. However, with the rising challenges of high taxes and economic uncertainties, investors are constantly seeking ways to optimize their returns. Enter cost segregation – a powerful tool that can unlock hidden tax benefits in strip malls, providing a competitive edge in the market.
Unleashing the Hidden Potential
The Cost Seg America team stands out in the cost segregation landscape by offering unparalleled expertise and exceptional service. On strip malls, our team typically finds.....
We will coordinate a date for our analysts to inspect your property and itemize your assets in more detail than traditional cost segregation studies. Using our proprietary technology, they will fully document, engineer and photograph or video the property in compliance with IRS guidelines, to ensure no depreciable component is missed.
Our team will work seamlessly in the background and will not interfere with the daily operations of the property. This effectively creates less work for the client while finding the maximum depreciable benefits!
After the inspection, the information is examined to find assets that can be depreciated faster, reducing your current tax liability and improving your cash flow. The report is run through our strict quality control to meet IRS guidelines, fully protecting you in the rare event of an audit.
Cost Segregation on a Strip Mall $2,124,932 in 1st Year Tax Savings!!!
Our client purchased a $5,430,003 Strip Mall and had a cost segregation study performed after purchase. Without a cost segregation study, the strip mall would have generated a 1st year depreciation of $139,230 using straight-line depreciation. Our client and his CPA were elated to accelerate $2,124,932 in the first year using 100% Bonus Depreciation. Our client was able to significantly reduce their Federal income taxes and increase their bottom line. Our client was then able to purchase another building and had a cost segregation performed on the newly acquired purchase.
1st Year tax write-off using Cost Segregation: $2,124,932 1st Year tax write-off without Cost Segregation: $139,230
Our methodology breaks down every component of your property to get the most benefits possible. The detail and precision that we provide serve as a comprehensive fixed asset tool that exceeds the IRS Tangible Property requirements. This asset management tool is provided to you and your CPA to effectively handle future disposition and abandonment, as well as ridding the asset sheet of any any "ghost assets".
"The information contained this newsletter is meant for guidance purposes only and does not in any way constitute legal or tax advice. Readers should seek advice from their CPA or Accountant in relation to information contained in these articles."