Which Businesses qualify for a Negative Interest Rate Loan in the Stimulus Package?

Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Which Businesses qualify for a Negative Interest Rate Loan in the Stimulus Package?”

Fellow Entrepreneurs I hope I have captivated your interest for the next few minutes. Yes you read the headline correctly. The so called negative loan is called Cost Segregation. This is simply an IRS approved methodology to depreciate the components of a building that an enterprise or investor owns according to its logical progression based on its shelf life. In order for the IRS to accept this study, it has to be performed very carefully and with thorough understanding of not only materials engineering but IRS guidelines and proper depreciation models. This study is generally performed by engineers and architects. This study yields proper depreciation figures both from previous years as well as future. A business can recoup all the overpaid takes since the acquisition of the building and can apply towards future tax credit.

What are the benefits of this study and cost associated with it? Well, there are a number of benefits from creating additional cash flow for businesses especially with the current economic situation we are facing; this would definitely be an option for business as many of them are not liquid enough to sustain their daily operations and perhaps future may seem bleak. There are other benefits such as reducing your insurance premiums in certain cases to even freeing up cash for other investments. Generally the return is phenomenal, anywhere from 1000% and upwards.

A recent study that was performed by Waterbury Financial Strategies’ Cost Segregation Department on a chain of 47 Motels yield $37.6M in tax benefits. This is almost like buying 7 motels at $5M each! Well, and the group that owned these motels, did just that. The engineers are Waterbury Financial Strategies Inc have performed over 15,000 studies some including the Fortune 500 Companies and crediting in excess of over $2 Billion to the clients.

So, why are more companies leaving ample money on the table? Over 80% of these companies have not heard of Cost Segregation and their accountants do not have the knowledge and expertise to perform these studies. Most of the accountants who perform these studies generally outsource to a professional engineering firm. A simple example of how it works. Generally when a commercial property is purchased, the fixtures and the building is depreciated using a straight line depreciation method over 39 year time period. This means all the components in the building are now on a 39 year life cycle. As you know, a carpet in a building is not going to last for 39 years, so come 5th year when the owner replaces the carpet, he still has 34 years to recoup the cost from the previous carpet. That means he is over paying on his taxes and not figuring out the time value of money.

Using proper methods can not only save a business hundreds of thousands of dollars but also generate more revenues and cash flow. For more information on this contact your local consultant at Waterbury Financial Strategies for a Free Preliminary Analysis on your property.

Get those Refunds back Wise Men!

Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com