Cost Segregation is a powerful tool for Minnesota real estate owners to save money on taxes. It increases your cash flow by reducing your taxable income.
We help real estate owners identify faster-depreciating assets and reclassify them into their IRS - approved categories.
Cost Segregation reduces your taxable income. You pay less tax and hold on to your money for your next investment.
Cost segregation can help you maximize the value of your real estate investments and increase profitability
Cost Segregation, an essential tax planning strategy used by businesses to accelerate depreciation deductions, can indeed be utilized in Minnesota. This state, known for its vibrant cultural scene and breathtaking natural landscapes, provides a conducive environment for companies to take advantage of this advantageous technique. By identifying and classifying various components of a commercial property, such as electrical systems, flooring, and HVAC, businesses can allocate costs more effectively and reap the benefits of shorter depreciation periods. Minnesota's business-friendly atmosphere thus allows enterprises to optimize their tax savings and divert resources towards further growth and development.
Does Minnesota Conform to Federal Bonus Depreciation Rules?
Minnesota's treatment of bonus depreciation differs from the federal standard and necessitates adding a modification of 80% of the bonus depreciation claimed at the federal level when calculating state taxable income.
However, tax laws and regulations may change over time, so it's essential to verify the current status with up-to-date sources or consult a tax professional.
Schedule a call with a ReCostSeg expert to discuss your options.
Understanding the intricacies of your site is paramount, and we leave no stone unturned. Our site visits, offered both virtually and in-person, are designed to ensure you receive a comprehensive evaluation, every time.
With the power of technology, our virtual site visits provides a convenient, efficient, and thorough assessment of your location. Leveraging high-definition video conferencing, interactive tools, and our seasoned team's expertise, we analyze your property from every angle. Perfect for those who appreciate quick turnarounds and minimal disruptions.
Our in-person site visits offer an unparalleled deep dive into your property's specifics. Our experts will walk the grounds, interact with key personnel, and provide firsthand insights, ensuring that every detail is accounted for. It's the traditional approach, redefined with the Recostseg touch.
In 2019 our client acquired a Medical Office Building in Minnesota for $650,000 with the land valued at $172,403. To maximize their investment and optimize tax benefits, they engaged our team to conduct a comprehensive cost segregation study. Our analysis allowed us to identify and accelerate depreciation on various building components.
The results were remarkable, with an impressive 33:1 payback ratio, leading to an estimated first-year tax savings of $65,467. By strategically reclassifying assets and shortening the depreciation timeline, the cost segregation significantly reduced the investor's tax burden and enhanced their overall return on investment.
At RE Cost Seg we believe quality works comes from quality experience. Our team of engineers has the expertise to provide you the maximum level of tax savings.
Fill out the contact form on our website with as much information as possible so that we can build a custom proposal with your estimated tax savings.
Once you sign we collect any supporting documentation. No appraisal? No problem. Let our team know and we will work to evaluate your property with only the documents you already have.
Scheduling a site visit is fast and easy. We use video conferencing to tour your property at your earliest convenience. For larger properties ask us about white glove service - we will fly to you to get it to quickly and pain-free.
We evaluate your property and build a fully engineered study. Once completed we provide a final pdf report as well as the fixed asset schedule to share with your accountant.
We can help you identify and claim valuable tax deductions on your property.
Our team of experts will work with you to identify potential savings and make the process easy and hassle-free. Contact us today to learn more!