Cost Segregation Study
Unlock your Rental's Tax Savings
Are you maximizing the tax benefits from your property?
A cost segregation study could open the door to significant tax savings for your business without needing a full on-site analysis.
Here’s how it works: our team identifies assets within your property that qualify for accelerated depreciation, allowing you to shorten the timeline for recovering your investment through tax deductions. Typically, building assets are depreciated over 27.5 or 39 years, but with cost segregation, you can reallocate certain parts of the property to 5, 7, or 15-year lives. This means immediate tax savings now, rather than waiting decades for deductions.
Key Benefits of a Cost Segregation Study:
1. Accelerated Depreciation: By reclassifying specific assets (such as lighting, flooring, and HVAC systems) into shorter recovery periods, you benefit from increased deductions now instead of spreading them over a longer period. The result? More money back in your pocket during the early years of your investment
2. Partial Disposition: When you upgrade or replace parts of your property, such as a
new roof or HVAC system, a cost segregation study enables you to write off the
remaining depreciable basis of the old asset. This “partial disposition” can help you
take advantage of deductions that otherwise would be lost.
3. Tax Savings You Can Rely On: By combining accelerated depreciation with partial
dispositions, you unlock immediate tax savings. These deductions can reduce your
taxable income and increase your cash flow, which can be reinvested into
your business or other investments.
A desktop cost segregation study offers all these benefits at a lower cost than a traditional on-site study, making it an excellent option for many property owners. Full on-site cost segregation studies are great for larger buildings.
