Cost Segregation Study
Detail studies that maximize depreciation
What is Cost Segregation?
Cost Segregation is a highly advantageous and widely embraced tax tactic utilized by owners of commercial and residential rental properties to expedite depreciation deductions, defer taxes, and enhance cash flow.
When you purchase real estate, you need to split the purchase price between the building and the land. A cost segregation analysis helps you determine the proper allocation of your investment.
To evaluate how a cost segregation study could benefit your property, please follow the link below and provide us with a few brief details.
Request Cost Segregation Proposal
Who Will Benefit From A Cost Segregation Study?
While a cost segregation study is particularly advantageous for those who have acquired or constructed investment real estate within the past 15 years, it's not a universal solution for all investors. However, it can be a valuable tool when investors seek additional liquidity for further investments.
Consider this scenario: You currently own a single-family home that you rent out. Now, you're eyeing the acquisition of an office building to expand your real estate portfolio. Through cost segregation, you can accelerate the depreciation of your single-family property, thereby lowering the taxes payable on it in subsequent years. This tax relief frees up capital that you can allocate towards purchasing the office property.
How Long Does a Cost Segregation Study Take?
The duration of the study can vary based on factors such as the property type, size, and the availability of necessary documentation. However, as a rough estimate, you can expect the process to last anywhere from 30 to 60 days.
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