Cost Segregation Study
Cost segregation is the process of identifying personal property assets that are grouped with real property assets and separating out personal assets for tax reporting purposes. When acquiring, renovating or building real estate, most taxpayers tend to overstate the amount of 39-year real property. This limits the depreciation deductions available to taxpayers in the early stages of their investment. A cost segregation solves this problem with our team reclassifying assets by maximizing the property eligible for treatment as 5-, 7- or 15-year property. Reducing tax lives results in accelerated depreciation deductions, a reduced tax liability, and an increase in cash flows.