Property Incentives

overview

Ensure Your Business Does Not Miss Out On Opportunities To Capture Property Incentives

Property incentives and tax strategies provide business opportunities for tax savings and financial savings to encourage business strength and growth.  The benefits come in the form of accelerated depreciation, special deductions, income tax credits, property and sales tax savings.  In addition, they are often a part of an overall incentives package related to business attraction.

Many of these opportunities provide great “look back” opportunities where a business can go back to prior years and identify and capture previously overlooked benefits.  By taking a proactive approach and pursuing these opportunities during the planning process or any time prior to making the investment, a business can often increase their benefit by taking certain actions and reduce their cost to capture the benefit by reducing the time and effort to secure the benefit. 

All businesses should consider the following when maximizing their property incentive opportunities:

  1. Conduct a review of your current assets to see whether an opportunity exists to claim an overlooked benefit (missing assets, under used or obsolete property, large undepreciated assets, etc.).
  2. Proactive identification of instances where the business is going to make substantial capital investments (purchasing, building or otherwise acquiring real or personal property).
  3. Review the available opportunities in conjunction with any other incentive opportunities since programs may affect each other and you will need to formulate an overall strategy to maximize the overall benefit to the business.

Many eligible businesses overlook these programs simply because they are unaware they qualify or receive only a portion of their eligible benefit by failing to identify all the available programs or fully capturing the benefit for the programs they do identify.

Please refer to our Incentives by State Map to identify some specific Property Incentive programs.

Client Successes

The buiding types and benefits listed below reflect actual properties accross the U.S. that have been serviced by CTI professionals.

  APARTMENT -  Property Cost: $11,538,000
YEAR 1 YEAR 5 YEAR 10
Depreciation Cash Benefits Depreciation Cash Benefits Cash Benefits at Sale 
$613,000 $245,000 $2,943,000 $1,177,000 $1,375,000
  HOTEL -  Property Cost: $6,318,000
YEAR 1 YEAR 5 YEAR 10
Depreciation Cash Benefits Depreciation Cash Benefits Cash Benefits at Sale 
$225,000 $90,000 $1,171,000 $468,000 $594,000
  MANUFACTURING (TECHNOLOGY) -  Property Cost: $12,833,00
YEAR 1 YEAR 5 YEAR 10
Depreciation Cash Benefits Depreciation Cash Benefits Cash Benefits at Sale 
$636,000 $254,000 $3,597,000 $1,438,000 $1,901,000
  MEDICAL -  Property Cost: $5,760,000
YEAR 1 YEAR 5 YEAR 10
Depreciation Cash Benefits Depreciation Cash Benefits Cash Benefits at Sale 
$1,627,000 $651,000 $1,825,000 $730,000 $906,000
  OFFICE (CLASS A) -  Property Cost: $72,556,000
YEAR 1 YEAR 5 YEAR 10
Depreciation Cash Benefits Depreciation Cash Benefits Cash Benefits at Sale 
$2,587,000 $1,034,000 $13,719,000 $5,487,000 $3,055,000
  OFFICE (CLASS B) -  Property Cost: $4,871,000
YEAR 1 YEAR 5 YEAR 10
Depreciation Cash Benefits Depreciation Cash Benefits Cash Benefits at Sale 
$368,000 $167,000 $634,000 $253,000 $350,000
  RESTAURANT -  Property Cost: $2,058,000
YEAR 1 YEAR 5 YEAR 10
Depreciation Cash Benefits Depreciation Cash Benefits Cash Benefits at Sale 
$269,000 $108,000 $479,000 $191,000 $254,000
   RETAIL -  Property Cost: $5,910,000
YEAR 1 YEAR 5 YEAR 10
Depreciation Cash Benefits Depreciation Cash Benefits Cash Benefits at Sale 
$263,000 $105,000 $1,371,000 $548,000 $697,000
Depreciation: Annual depreciation from Cost Segregation. 
Cash: Cash/tax savings realized based on effective tax rates.

Cost Segregation Resources Calculator

Owners of commercial properties may qualify for substantial tax savings. Try our cost segregation calculator to see if you are qualified to save significant tax dollars.

The Key To Unlocking Your Cost Segregation Potential This Year  Discover how to accelerate your property depreciation and turn it into current  tax savings. Download Guide

Our Blog