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 One-Sixth 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 distinctive 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.
Construction Proceeding Steadily at Monterey Motorsport Park
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. — although the selection is dwindling rapidly with approximately 50% of the space reserved. Construction is now underway (see our live cam), with the opening scheduled for the 4th quarter of this year.
If you’d like to know more about what this uniquely conceived car community has to offer a business owner or investor like you, contact one of our brokers or development team members:
• Dennis Chambers, [email protected], (408) 605-6760
• Josh Jones, Cushman & Wakefield, [email protected], (831) 647-2106
You can also get in touch with Gordon McCall, who will be relocating his business — McCall Events — to the community upon build-out, at [email protected] or call (831) 372-9311. Or contact Ralph Borelli at [email protected] or call (408) 521-7117.
