Why are 90% of Self Storage Owners Overpaying Federal Income Taxes?
We saw this ad some time ago and wondered what was involved. Now we recommend this to all self-storage owners. The ad was run by O’Connor and Associates out of Houston, Texas. They are specialists in depreciating real estate. Call Mike Olivares, National Director of O’Connor and Associates, toll free at 800-856-7325 or send him an e-mail at firstname.lastname@example.org if you have additional questions.
“Cost segregation involves separating up to 135 components of real estate that depreciate faster than the building itself. Identifying theses depreciable items is often an involved process and should be done by a third party. The IRS allows taxpayers to use third-party cost segregation studies for the allocation of certain costs in a new building as either assets that qualify for the ITC (tangible personal property), or costs properly treated as part of structural building components. A real estate appraiser can accurately value and document 5, 7 & 15 year depreciable items.”
So what are the benefits of a Cost Segregation Study you might ask?
• It decreases a self-storage facility’s income taxes, allowing the owner to invest the savings in capital improvements, reduce debt or simply improve cash flow.
• It provides immediate reduction in federal income tax through increased depreciation.
• Defers taxes on gains to a lower rate.
The first client of ours who had the study completed was blown away by the results, as an additional $550,000 was moved from the 39-year depreciation to a 5,7, & 15 year schedule.
Go to www.poconnor.com and review the 14 different free articles about this process under the heading of “Federal Tax Reduction”.
We have additional articles on cost segregation for you to read from different sources if you are interested. Please contact us for more details.
Lindsey Self Storage Group is only affiliated with this company as a happy customer.
Remember, self storage brokerage is our only business!