Minimizing Income Tax-Opportunities for Commercial Property Owners to use Cost Segregation

When the advisor can identify a client that has commercial and/or apartment properties, they will understand how to discuss the possibility of substantial tax deferrals that the client has available to them. Typically, for every $1 Million of basis in a building, the owner will be able to defer about $60K of income tax. These funds can then be re deployed and used elsewhere. Often the advisor may be able to fund estate planning life insurance, pensions or other capital intensive solutions. When these solutions can be had with limited use of current cash flow, the advisor is the hero. Understanding Cost Seg as a tool can enable the advisor to gather new clients as well. When a prospect hears about CSS, and it hasn’t been previously discussed, the source of this solution will often become the new trusted advisor.


Armed with this knowledge, advisors will be able to discuss how commercial property owners have substantial tax deferral opportunities available to them. This will apply to new purchases, new renovations and properties purchased in the last 10-12 years.