Leverage The Full Value of Your Investment Property Through Cost Segregation. Through Cost Segregation, investment property owners can significantly reduce their federal tax liabilities by accelerating the depreciation rates of their properties. The use of cost segregation is fully recognized and accepted by the IRS as a proper depreciation accounting method. As most investment property owners are aware, commercial property is subject to a 39-year straight-line depreciation, and residential rental property is subject to a 27.5-year straight-line depreciation. Cost segregation accelerates this depreciation by reclassifying various components of the property as either personal property or land improvements. These reclassified components can then be depreciated over 5, 7 or 15 years. On average, anywhere from 20% to 40% of a property can be reclassified using this method. For some properties, the reclassification can be as high as 60% or more. While cost segregation, as a concept, has been around for years, recent changes in tax laws have made this strategy more effective than ever. For example, a cost segregation study can be implemented at any time and can even be used to recapture accelerated depreciation opportunities that were missed in prior years. Despite these benefits, however, this tax strategy is not well known and is significantly under utilized by investment property owners. We are one of the leading providers of cost segregation studies in the United States. Our engineers perform extremely detailed engineering-based studies that are aimed at maximizing these benefits while remaining in full compliance with the IRS requirements. We also offer a no cost, preliminary analysis to qualified clients that will illustrate how significant the benefits can be for their property before committing to the expense of a full study. If you want to discover the tax benefits hidden in your property, contact us today. | |