Find Out How Cost Segregation Can Lower Your Taxes.

 

Let us effectively reduce your taxable income by accelerating your depreciation.

 

$1+ Billion

In Property Basis Analyzed

50+ Years

Of Combined Property Analysis Expierence

5+ Million

Square Feet of Property Analyzed

Trusted By Real Estate Investors for Decades.

With over 50 years of combined experience in cost segregation and property analysis, our team are proven experts in cost segregation.

 

 

Their unique combination of property analysis, public accounting expertise, and advanced engineering education ensures maximum tax savings for clients.

 

 

Rely on their unparalleled knowledge to unlock the full potential of your cost segregation study and maximize your returns.

Client Case Study: Cost Seg Nets A Short-term Rental Investor $56,000 Dollars In One Year.

 

Client Overview: A local real estate investor owned a short term rental property with an initial building basis of $387,000.

Objective: The primary goal was to identify and reclassify assets within the property to accelerate depreciation deductions, thereby maximizing tax benefits.

Property Details:

  • Starting Building Basis: $387,000
  • Property Classification: 39- year, 15-year and 5-year assets
  • Bonus Depreciation: 100%

Results:

  • Ending First Year Benefit 15-year: $69,000
  • Ending First Year Benefit 5-year Property: $85,000
  • Bonus Depreciation Utilized: 100%
  • Additional Cashflow for 2022: $56,980

Impact on Client’s Finances: The cost segregation study resulted in a remarkable transformation of the client’s tax landscape. By reclassifying assets and leveraging bonus depreciation, the client not only gained immediate tax relief but also enhanced cash flow for future investments.

Conclusion: This case study illustrates the effectiveness of a well-executed cost segregation strategy on 39-year short term rental properties. Our client experienced a significant reduction in taxable income, unlocking substantial savings and strengthening their financial position. Cost segregation continues to be a valuable tool for businesses looking to optimize their tax position and improve overall financial performance.

 

 

I was referred to him by someone on the Bigger Pockets forums and had a great experience.

Jim S.

They do an excellent job, very responsive and trustworthy. We have used him two times.

Julia G.

These guys are ridiculously thorough and did an amazing job.

Shelton P.

Unlock Your Tax Savings And Schedule A Short Consult Below

 

Experienced

Our Team has  50+ Years of Combined Property Analysis and Cost Segregation Experience.

Data Driven

Our Data Driven Approach Utilizes Sophisticated Models to Ensure You Get The Most Tax Savings Possible.

Our Guarentee

 We Proudly Stand Behind Our Cost Segregation Reports. In The Rare Event Of An Audit, We Will Back Up Our Report With No Questions Asked. Rest Easy.

$1+ Billion

In Property Basis Analyzed

5+ Million

 Property Square Feet Analyzed

What Does Cost Segregation Do?

Cost segregation is like turning on a flashlight in a dim room—it illuminates valuable assets hidden in your real estate investment. Picture your property as a treasure trove: some items are glittering jewels, while others are sturdy but age quickly. Cost segregation is the process of sorting through these assets, unveiling their true worth according to the tax code.

 

When you acquire or construct a commercial property, the IRS typically spreads out its depreciation over a lengthy period, such as 27.5 or 39 years. However, many components of the property—think lighting fixtures, flooring, and more—have shorter lifespans, perhaps just 5, 7, or 15 years. Cost segregation identifies these shorter-lived assets and gives them their rightful recognition.

 

Why does this matter? Well, by acknowledging and distinguishing these assets, property owners can expedite their tax deductions. It’s akin to rewinding time for your tax bill—you can accelerate those deductions and reap the benefits now instead of waiting.

 

In essence, cost segregation is about savvy tax planning. It’s about optimizing your cash flow, lightening your tax load, and maximizing your returns—all by adhering to the IRS’s guidelines and ensuring every asset receives its fair share of acknowledgment.

What is Cost Segregation?
Cost segregation is a tax savings strategy that allows property owners to reclassify real estate components and improvements, leading to accelerated depreciation deductions. This process identifies and separates personal property assets from real property assets, enabling taxpayers to depreciate elements of a building more rapidly than the standard 39-year (commercial) or 27.5-year (residential) period.
How much is a typical Cost Segregation Study?
The cost of a study depends on factors such as property size and complexity. We offer personalized quotes after an initial consultation to understand your specific requirements.
Will a cost segregation study trigger an audit from the IRS?
While no strategy can guarantee immunity from audits, cost segregation studies are a widely accepted and IRS-approved practice. Our meticulous approach ensures compliance, minimizing any potential audit risks.
How much time does the cost segregation process typically take?
The timeline varies depending on the size and complexity of the property. Generally, the process takes us ten days, with our team working efficiently to minimize disruption to your business operations.
Can I benefit from cost segregation if my property has been owned for several years?
Yes, cost segregation studies can be applied retroactively. Even if you have owned the property for several years, you can still capture previously unrecognized depreciation benefits through a study.
How can I get started with a cost segregation study for my property?
Simply reach out to our team for a consultation. We’ll discuss your specific situation, explain the process, and provide a customized plan to maximize your tax savings through cost segregation.

Contact Us

Call, Text or Email today.

team@costsegassociates.com

(205) 558-8296

M-S: 8am-5pm, Sunday: Closed

Request an Estimate