Cost Segregation Key to Potential Savings
Traditionally, business property has been presumed to have a useful life of 39 years. Owners deduct the cost of a property — minus the land value — over four decades.
But what if you could accelerate the deductions — writing off substantially more in the first few years when your out-of-pocket costs to buy are the greatest — so that your net after-tax cash outlay is significantly reduced? That’s precisely what happens when you take advantage of an IRS-recognized practice called cost segregation. And it can make purchasing a garage-condo at Monterey Motorsport Park for business or investment purposes much more affordable.
Cost Segregation Accelerates Write-offs of Up to Over 25% of Unit’s Value
Based on an engineering study conducted by a highly qualified expert, cost segregation breaks down a property’s value — minus 20% for the land — into 5-year, 7-year, 15-year, and 39-year components. The shorter-life components include personal property such as carpeting, cabinets and wall coverings — as well as land improvements such as paving, concrete, fences, interior partitions, electrical, and plumbing. These represent up to one-sixth of a unit’s value at Monterey Motorsport Park that can be written off in the first year, thanks to their short useful lives PLUS large bonus depreciation write-offs available under the tax code.
Upheld in IRS Reviews and Audits
Cost segregation, backed by detailed engineering studies, has been upheld repeatedly in IRS reviews and audits over the past ten-plus years. This is not some high-risk, only-for-the-most-daring scheme. It’s a proven, practical technique your CPA will completely understand. And it can make the purchase of any commercial property for business or investment purposes — such as the brand new, upscale garage-condos at Monterey Motorsport Park —highly affordable on an after-tax basis.
Want to learn more and have something you can share with your CPA? Download our free, informative cost-segregation white paper — written with input from a CPA, based on a cost-segregation study by our expert engineering consultant. There’s no obligation.
Monterey Motorsport Park Nearly Complete — First Owners Moving In
Located adjacent to Monterey Regional Airport along Highway 68, Monterey Motorsport Park represents the next evolution in upscale, luxury garage-condos. The four-building, 90,000 sq. ft. complex offers a total of 86 units ranging from slightly less than 700 sq. ft. to nearly 2,100 sq. ft.
Construction is now finished on three of the four buildings — with the final building due to be completed this month. Owners are closing on their units, customizing the spacious mezzanines found in each garage-condo into a leisure retreat or personal office, and moving in. The excitement is building…with all of the track days and major races at nearby WeatherTech Raceway Laguna Seca, collector events and of course Monterey Car Week 2020 fast approaching.
If you’d like to know more about how cost segregation can get you into your favorite unit in this unique car community with minimal after-tax cash outlay — contact one of our brokers or development team members:
- Josh Jones, Mahoney & Associates, [email protected], (831) 233-2196
- Ryan Clark, Cushman & Wakefield, [email protected], (831) 755-1635
- Dennis Chambers, [email protected], (408) 605-6760
- You can also get in touch with Gordon McCall, who’s part of the development team and will be relocating his business — McCall Events — to the community upon build-out, at [email protected] or call (831) 372-9311.
- Or you can contact Ralph Borelli at [email protected] or call (408) 521-7117.
