Cost Segregation is an application by which commercial property owners can accelerate depreciation and reduce the amount of taxes owed. By choosing the right depreciation method, owners can increase their cash flow by an average of $35,000-$60,000 per million dollars of self storage building costs.
“Use it or lose it” is the name of the game when taking deductions from your renovations. Put extra cash in your pocket by writing off parts and components of your facility that have been discarded but remain on the depreciation schedule. In the future, this must be done in the current tax year. 2014 is the last tax year in which you can catch-up for previous years.
on your Team
We don’t know anyone who likes taxes, except for our tax experts. They’ll help you navigate the rules, regulations and write-offs that can help you make more money on your self storage investment. Let them do the heavy tax lifting, so you can enjoy the benefits.
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CSSI is a cost segregation firm specifically focused on performing the engineering- based cost segregation study on your property.
Additional Cash Flow
$490k Standard Self-Storage $32K $1.4 M Facility $111k $2.3 M Climate Control $152k
- Facility does not have to be new construction
- Additional cash flow comes from accelerated depreciation and
Tax Reform’s 100% bonus depreciation.
- Cost segregation is an IRS approved method
- Cost segregation does not trigger audits
Deductions from Renovations
- Tangible Property Regulations are a complete reboot of the tax code pertaining to depreciation.
- Write-off previously installed doors, AC units, roofs, etc., in tax year 2014. Going forward, Tangible Property Regulations will require that deductions be taken in the same tax year for these improvements.
- CSSI is specifically experienced in getting these deductions. Our experts serve as advisors to the AICPA (American Institute of Certified Public Accountants) in the areas of cost segregation and Tangible Property Regulations.
- CSSI does all the work, then delivers the results to your tax professional to include in your tax return.
Tax Experts on your Team
- Taxes are confusing, especially the new Tangible Property Regulations.
- Owners are required to depreciate each component and building separately, creating depreciation schedules on a building-by-building basis.
- Storelocal has partnered with CSSI to make it easy to take advantage of the new Tangible Property Regulations.
- CSSI will provide a cost-free preliminary analysis of your property.
- Storelocal's dedicated CSSI representative will review the analysis with you and estimate your potential savings and ROI.
To Get a No-cost Analysis on Your Property:
- Provide a depreciation schedule for any previously owned buildings
- Provide the purchase date (or date put into service) and cost basis of the building (excluding land)
- Provide the building type (storage facility, climate controlled storage, RV or Boat Storage, etc.)
CSSI will provide a no-cost analysis with estimated savings and study pricing.