Let’s pretend that it is tax season – depending on when you’re reading this, it might be. As April 15th approaches, you’re desperately searching through your finances, looking for deductions that can reduce your tax liability. Now, you probably think that you looked everywhere and explored every option. However, there’s one you might’ve missed: cost segregation.
A Cost Segregation study involves classifying property components that can be identified as personal property in order to lower your tax bill. Sound simple enough? Well, there’s a little bit more to it. What we’re going to do today is walk you through the cost segregation process while listing off the factors that would make you eligible.
Shorter Depreciation = Lower Taxes
As you may know, any property that you or your business owns is slowly depreciating in value over time. With this depreciation comes another expense – something that can be written off as a tax deduction. However, because depreciation of the property occurs over the course of 30 to 40 years, the expense is fairly low. This is where cost segregation comes in.
What cost segregation does is speed up the depreciation process by identifying assets that would typically belong to the property as personal assets themselves, with much shorter lengths of depreciation. For example, assets like carpeting and wall covering have a depreciation length of five to ten years compared to 30. This allows you to write off larger depreciation expenses to lower your tax liability.
How Is This Done?
Now that you know what cost segregation is, how do you go about it? Well, it’s a study like I said. That means a cost segregation specialist will come in to analyze various aspects of your property including plumbing, electrical, flooring, and walls just to name a few.
They will also assess improvements to the land surrounding your property like sidewalks and landscaping as well. Based on this assessment, the cost segregation specialist will determine which personal property assets can be reclassified for accelerated depreciation. This will increase the depreciation expense, allowing for a larger deduction come tax time.
What Are The Benefits?
As previously stated, cost segregation benefits the property owner in the form of a lower tax liability. In addition to this, cost segregation is also great for estate planning. This can create tax benefit opportunities well after you’re no longer around, which makes payments easier for whoever you decide to leave your estate to.
Being audited by the IRS? Fortunately, cost segregation documentation leaves a clean paper trail for the IRS, potentially simplifying matters in the future. Last and definitely not least is an increased cash flow. The lower the tax liability, the more money you save, meaning that you can apply it to other aspects of your home or business.
For additional information on cost segregation, check our cost segregation services page. For everything else, feel free to visit the Nazaire Blog or contact us today!
Being able to tell the future would be a great feat in human science. But let’s face it, you’ll never be able to tell the future with 100% accuracy. There is no scientific way we could ever come close to know what will happen exactly in the near future. But we have methods where we can guess certain instances that could occur. Forecasting is the ability to tell the future or estimate a future event. Still, like I stress, no one can tell the future, but it would certainly be nice to have a specific type of guideline that could help prepare us for the future’s unforeseen circumstances. That’s why financial forecasting services will help any of your monetary investments or financial goals.
It’s a service that looks out for your money. It prepares you for unforeseen circumstances by forecasting what could be plausible with data already harnessed of your specific monetary assertions.
Financial Forecasting Will Paint You a Picture
Like I have been stressing just in the introduction, if you can’t tell the future, you really don’t know what is going to happen.
Staying level-headed and grounded as so, is a philosophy that will increase the likelihood of us accountants taking care of your money that much better.
With financial forecasting, we could help show you an image that was never seen before about how you can utilize the monetary and financial situation you are currently in.
We can paint a picture that can be unique, and perhaps you yourself could be drawn to what we offer to you. Or, you could help paint an even bigger and better picture than what we have to offer to you as financial forecasters.
Financial Forecasting Helps Show You
The purpose of financial forecasting services, are to help monetize your future revenue and identify the expenditures you should be worried about.
Forecasts should be extended into several years of the future, but in order to understand your financial forecasting result, you’ll need to have your past, current, and projected financial conditions magnified and studied, to help determine your current and future fiscal conditions.
Being able to show you a projected future analysis of what could possibly happen monetarily will allow you to make, as a company, more clear headed decisions.
Being able to receive a well-studied financial forecast can help you not only with budgeting, but perhaps, curating policies that support your company throughout the fiscal years.
Don’t Forget to Remove Issues That Could Impact Your Data
When obtaining financial forecasting services to better your current financial projections, make sure you do whatever you can to assist the forecasters. This includes making sure that your financial records and other forms of studies of the forecasters are meeting accurate depictions of what your monetary status is.
Make sure the data they have to study, about your finances are all accurate, and wrong placements of financial information will cause major issues in the forecasting, leaving you with results not even strewed towards accuracy.
How Credible Are Your Forecasts
When finalizing potential forecasts, there are guidelines you need to follow to make sure that the forecast can be trusted. Usually, you’ll need to make sure that the forecast has meet credibility by expressing the forces that had helped you garner your results.
Next, you will have to make a valid presentational approach to make sure that the forecast is understandable.
The next important aspect is to make sure that the forecast can be linked to decision making.
It’s useful to have a guideline to make financial decisions, but when obtaining financial forecasting services, you will need to make sure that the information is worth relying on. Still, don’t be focused on the potential forecast. The forecast is only a probability. It will not tell you the future.
Being able to invest into anything in your life, to bring out a positive outcome, is a skill in itself, that’s why services such as investment advisory services exist today. Not all ventures or investments are as fantastic as they seem, but at the same time, lots of investment that didn’t seem promising could actually be a diamond in the rough. For instance, Uber, the online transportation network company has had to face a lot of hurdles to be as prominent as it is today. Plenty of investors had shied away from its early stages as a startup, but those who stayed on received growth like no other, as Uber remains one of the highest valued startups in the world. This still couldn’t have been done as efficiently as it has been done without the team of advisers Uber’s CEO Travis Kalanick had.
What You Need to Know about Investing
Being keen to the market, people, or product you want to invest in is the basic format, to make your investment options more plausible or not. You’ll want to make sure you’ve done your research on the product, services, people, or business ideas you’ll want to invest in. Likewise, understanding the quality of your personal time you’ll want to put into an investment could make or break your current investment options.
Let’s say you have a personal project you want to invest in. You can hire manpower, manage your finances, optimize marketing strategies, but if you don’t put your personal time into the project, how do you expect to steer the project into a success?
Here is where investment advisory services can help. Having a professional (better yet, a professional who has experience in your industry) assist you with your investment is a substantially more defensive approach, to make sure you reach your goals. This lowers risks as well as to enhance your rewards.
Investment Advisory Services Provide
One of the most important factors when you invest in anything is to make sure your finances, costs and earning are meet with a reputable ratio. A professional who offers investment advisory services can help mitigate which investments and costs are currently worth investing into. You don’t want your costs to ever out way your rewards.
Not only does having investment advisory services beneficial for the start of an investment, or the management of your finances. But they can assist you with time.
Always being on point with your investment and its markets will give you a sophisticated edge in the industry you’re in. Having that edge puts you on time or ahead of production, and more competitive with your competition.
Having a financial investment service to help you achieve your goal gives you not only insight on your finances or information on your investment, but you can also optimize your time better with an investment advisory service assisting you with your current investments. This gives you time when you have a helping hand helping you.
The best investment advisory services will do a lot of analysis in the current market you are in. They will understand and help you to achieve your goals through marketing, R&D, and financial development. They will help assess the current industry and geographical, as well as political climate for your industry and product. Not only can investment advisory services advise you on how to invest your money, but one of their main goals is to help you mitigate your risks and optimize your rewards. Because any good investment should bring back a higher return on your wealth for that investment you invested in.
It’s very tedious to get all of your taxes in order for the IRS’s annual exams. It might feel overwhelming already for you to file your taxes personally, for your own personal finances, but filing taxes for your business is a whole other story. These tax tips for small businesses will help your business achieve better financial stability.
Most small business owners probably think that they have an idea of what their business is worth. Lots of business owners who make a net profit may think that they have a pretty positive estimate of their business valuations, and why shouldn’t they think that? (more…)
If you are a resident of New York State, and you own property in New York State, and you pay your property taxes in New York State, you are eligible for formal review and assessment. There are two levels of review for your property.