Hello Mark and Matt,
Thank you for all that you do day in and day out, I have read all your books and listen to the podcast weekly! I’ve learned so much about small business, tax strategy, and self-directing, and feel so much more comfortable as a young entrepreneur because of it, you guys ROCK!
I have a question for the two of you, but here is some background first.
I am 25 years old and looking into buying a laundromat with a trusted business partner. It is in the state of Florida where I will be moving in July. The business is for sale with all the assets and has a strong net income without any social media marketing or extra income opportunities (vending machines, atm’s etc.). There are no employees, and it currently operates cash only. The company does not own the building, as they have a rental expense on their balance sheet, but they currently own all the equipment, and it is less than 10 years old. I have heard and researched a bit on Cost Segregation studies but have little experience with them to date as I have been residing in New York State and they do not allow for them! This will be my first “base hit business” to purchase and I want to optimize the business for taxes from day 1 if possible!
My questions are, can we have a cost segregation study done on the equipment to recoup some of our down payment and is something like this worth the time, energy and expense? Also, what kind of due diligence questions would you ask when interviewing a company to do this for you and what would be a fair cost to pay for it?
Thanks again for all you do for us guys on Mainstreet!
- Collin Parody