CRE Brokers: Boost Your Sales Package by Including a Cost Segregation Proposal
A cost segregation proposal can enhance your sales package by showing your client an added benefit of the sale.
Cost segregation is a combination of tax-accounting and engineering that reclassifies select IRS-approved assets in a commercial property. Assets like carpeting, lighting, and decorative wall coverings (see a full list here) can be deprecated at either a 5,7, or 15 year rate resulting in a smaller federal tax bill.
Example: let’s say you have a client purchasing a newly-constructed apartment building. The property has three retail spaces that occupy the lower level and fifteen apartments on three floors above. The price is $1,900,000. In this case, after a CRS cost segregation analysis, the client can save over $50,000 on their taxes.
A cost segregation analysis proposal shows your client future tax-savings and additional ROI after the sale.
We can provide a free, custom quote that you can include in your sales package that explains what cost segregation is and how your client can benefit from it. Call Beth Burke at 732-548-3855 x109.