Cost segregation is a tax strategy that enables real estate investors to reclassify certain property assets, accelerating depreciation and increasing annual deductions. Our CPA team specializes in conducting thorough cost segregation studies that allow you to make the most of your real estate investments.
Cost segregation studies offer substantial tax benefits by accelerating the depreciation of specific components within a property. For real estate investors, this strategy can increase cash flow by allowing larger deductions early in the property’s life. Our CPA team specializes in analyzing real estate assets to identify opportunities for tax savings through cost segregation. Here’s how this process can enhance your investment returns:
Cost segregation involves identifying and reclassifying certain building components into shorter depreciation categories. By reallocating eligible components from a 39-year depreciation schedule to 5, 7, or 15-year schedules, you can maximize your deductions sooner. Our CPAs conduct in-depth analyses to categorize assets accurately, ensuring compliance and optimal tax benefits.
By accelerating depreciation, you reduce taxable income and increase cash flow—especially beneficial for high-value properties. Our CPAs strategically plan depreciation schedules to match your investment goals and ensure you’re maximizing cash flow during the early ownership years.
The Tax Cuts and Jobs Act (TCJA) expanded bonus depreciation to allow 100% expensing on qualifying assets. Additionally, Section 179 provides immediate deductions for certain improvements. Our team ensures you take full advantage of these provisions, applying them strategically across your real estate portfolio to maximize tax savings.
Through a meticulous cost segregation study, our CPA team helps real estate investors unlock the full potential of their properties by accelerating tax deductions and improving cash flow. Let us show you how cost segregation can support your investment strategy and enhance financial outcomes.