Our Services
Cost Segregation is a tax-saving strategy that allows real estate investors to accelerate depreciation on their properties. By identifying and reclassifying certain components of a building as personal property or land improvements, investors can claim higher depreciation deductions in the earlier years of ownership. This can significantly reduce taxable income and improve cash flow.
Why Consider a Cost Segregation Study?
• Immediate Tax Savings:
Accelerated depreciation means more upfront tax deductions, freeing up cash flow for other investments or operational needs.
• Improved ROI:
By increasing cash flow, you can reinvest in other properties, pay down debt, or grow your portfolio faster.
• Works for New and Existing Properties:
Whether you’ve recently purchased a property, built one, or owned it for years, cost segregation can unlock tax savings.
• Tax Deferral Strategy:
Enjoy tax savings today while deferring income tax liability to the future—when you might be in a lower tax bracket.
Complete Cost Segregation Study
A complete cost segregation study consists of:
Property Analysis:
Experts analyze your property to identify components that qualify for accelerated depreciation. These components might include flooring, lighting, HVAC system, and landscaping.Reclassification of Assets:
The study breaks down the property into categories with shorter depreciation lifespans (e.g., 5, 7,or 15 years) instead of the standard 27.5 years (residential) or 39 years (commercial).Tax Benefit Calculation:
A detailed report is provided, outlining the reclassified assets, their depreciation timelines, and the resulting tax savings.IRS Compliance:
The study ensures compliance with IRS guidelines, minimizing audit risks.
Property Analysis and Data Collection
Based on clients’ needs
Takeoffs, analysis, and estimates
Photo logs and reference materials
Building models
