Real Estate Accounting
Award-winning service and expert advice from a firm you can trust.
The real estate industry is always changing, and with shifting market conditions, tax laws, and interest rates, it can be risky. That’s why it’s crucial to have an accountant who understands these nuances to provide expert guidance. Our firm specializes in working with investors, developers, and builders who need a professional with deep knowledge of their business.
We provide traditional accounting, tax, and consulting services to help you seize the right opportunities and build a successful, profitable business. Our top priority is listening to your needs and providing the guidance you need to reach your goals.
Investing in commercial real estate for your business rather than leasing space can be a great long-term financial decision. Our client, who specializes in heavy civil, site construction, and structural concrete services, was weighing this option as their company continued to grow. Our CPAs were able to show the benefits of a cost segregation study on the client’s potential real estate investment.
Typically, the facility’s property components and land improvements are classified as “building” and depreciated over the standard 39-year period. Cost-segregation studies identify items that could be reclassified as having shorter depreciable lives.
After seeing the tax savings resulting from the study, our client chose to build a new shop to repair and maintain their construction equipment. After conducting a cost segregation study, they learned that the property, which otherwise would have been classified as a 39-year property, was depreciated over 5, 7, and 15 years, making it eligible for bonus depreciation. We were able to guide our client to thousands of dollars in tax savings by allowing them to see their opportunities with this sound decision.
“When we were trying to decide the most favorable option of building or leasing, we didn’t realize the benefits of a cost segregation study in order to support our next steps. After sharing our situation with our CPAs at Barrett and Co., they explained the benefits of the cost-segregation study. Through our partnership and knowledge gained with the study, we were able to make a sound investment choice and have been able to take the tax money saved and invest it back into our business.”
Kevin T.
If you are looking to time your real estate transactions for maximum profits and minimum taxes, we are here to help. Let’s work together to create a game plan.