“Improving your cash flow by reducing your taxable income is the goal of our cost segregation specialists.”
Net Present Value (or NPV) is a calculation used to determine the return on investment of a purchase, project or study over its lifetime. NPV calculations are often used during an analysis of the net cash flow benefits of a cost segregation study.
A cost segregation study identifies real estate assets that qualify for accelerated tax deductions through their reclassification to shorter recovery periods. For many clients, the net present value (NPV) savings generated by the study equals an amount large enough to make the cost of the analysis a worthwhile investment.
If you have used a net present value calculator or table to estimate whether you have a positive NPV, you may already know if a cost segregation study is right for you. In fact, while tax savings vary, based on calculations involving your overall tax situation and the specific assets in any given property the positive benefits of a cost segregation study may be quite significant.
If your net present value calculation is a positive one, you may receive these benefits:
Often times, clients uncover significant positive net present value through a cost segregation study, allowing recovery of money that had been left on the table and increasing cash flow. To discover if your property is eligible, contact Madison SPECS for a free initial evaluation.
