Villa and Hotel Owners Qualify For A FREE Cost Segregation Study
How It Works
Contact us for your completely free Order of Magnitude study to confirm this is a worthwhile undertaking for you.
We produce your Cost Segregation Study strictly adhering to the IRS Cost Segregation Audit Technique Guidelines.
In return, you trade us for unused time in your Villa or Hotel which you know you can't fill anyway.
Your CPA submits the study summary and the taxpayer can either offset future tax liabilities up to that amount over the next 5 years or receive a refund for overpaid taxes up-to that summary amount by amending tax returns up to three years back.
You can qualify for rebates and tax deductions of hundreds of thousands of dollars
Cost Segregation Viability
In determining the viability of a cost segregation study there are 2 key elements. The property and the tax status of the taxpayer/owners.
- The property. Any property considered commercial, including residential used for a commercial (rental) use. Tax basis–Purchase price minus underlying raw land plus capitalized improvements. Tax basis must be at least $750,000. The age of the property does not matter. Only the length of time owned by current owner maybe a concern. If the property was owned by the current owner prior to January 1,1987 it is ineligible.
- Tax status of taxpayer/owners. Cost segregation is all about tax benefits, and the net present value of the cash it generates. In order for cost segregation to be beneficial to owners they must be able to utilize the tax benefits. If an owner is a passive investor, under the tax code they may have passive loss limitations. If the property, through our study, is increasing the passive losses they may not be beneficial until an owner sells. However if that passive investor has other investments that generate passive gains, the passive losses from real estate can be used as an offset to the passive gains.
If the owner is an active real estate professional or owns the real estate and spends all of their time managing and running the real estate (there are 2 tests to determine status as a “real estate professional”) then all gains and losses are considered active. An example could be an owner/operator of a B&B or a boutique hotel. Or an owner with multiple vacation villas that makes a business of renting those properties.
Example Villa Estimate
Want to see the numbers and how this really works? Download this real life example of a $8,000,000 Villa. The increased depreciation of $1,073,750 following a Cost Segregation Study leads to an increase in cash flow of $536,875.