What is Cost Segregation?

 Cost segregation is a powerful tax planning strategy that allows real estate investors to accelerate depreciation deductions on specific components of a property, reducing taxable income and maximizing cash flow. By identifying assets that can be depreciated over shorter lifespans (such as 5, 7, or 15 years instead of 27.5 or 39 years), a cost segregation study can lead to substantial tax savings in the early years of property ownership. 

 In a cost segregation study, engineering and tax professionals analyze your property’s structure, systems, and components. The study breaks down a building into its individual components, such as electrical fixtures, HVAC systems, flooring, and landscaping, that qualify for shorter depreciation periods under IRS guidelines. This reclassification allows you to accelerate depreciation deductions, potentially resulting in significant tax deferrals and increased cash flow.
 

• Specialized Expertise: Our team combines engineering and tax expertise, ensuring a thorough and compliant analysis of your property.
• Optimized Tax Savings: Unlock the hidden tax savings within your property through targeted asset reclassification.
• Customized Reports: Receive a detailed report with breakdowns of qualifying assets, depreciation schedules, and IRS-compliant documentation.
• Faster ROI: Use accelerated deductions to improve your cash flow, freeing up capital to reinvest or grow your portfolio.
• Proven Results: Our studies consistently deliver significant tax benefits, maximizing your investment’s potential.

Cost segregation studies are ideal for:

• Commercial Property Owners: Office buildings, retail spaces, and industrial properties can benefit substantially.
• Residential Real Estate Investors: Apartment complexes, rental properties, and mixed-use buildings.
• Newly Purchased Properties: Especially advantageous within the first few years of ownership.
• Property Renovations: Newly renovated spaces can also qualify for reclassification and accelerated depreciation.