We've partnered with industry experts to provide cost segregation studies.

What is a Cost Segregation Study?

A cost segregation study is a powerful tax strategy that reclassifies the components of your commercial or residential rental property. Instead of depreciating your entire building over a long period (typically 39 years for commercial, 27.5 years for residential), a study identifies and separates certain assets within the property—like plumbing, electrical systems, landscaping, and even specific fixtures—that have much shorter depreciable lives (typically 5, 7, or 15 years).

How It Works: The Financial Impact

The core benefit of a cost segregation study is accelerated depreciation. By moving a significant portion of your property's cost into these shorter-lived categories, you can claim larger tax deductions in the early years of ownership. This isn't a new tax deduction; it's a way of getting the deductions you're already entitled to, but much faster.

Why Pay for a Study? The Key Benefits

Paying for a professional cost segregation study can unlock immediate and substantial financial benefits for commercial and residential rental property owners.

• Increased Cash Flow: By accelerating your tax deductions, you can significantly reduce your current taxable income and generate more cash flow for your business or investments today.

• Tax Deferral: You're not eliminating taxes, but you are legally deferring them into the future, giving you the benefit of using that money now.

• Retroactive Savings: A study can be performed on properties you’ve owned for years, allowing you to retroactively claim missed deductions from prior periods.

• Reduced Tax Burden: It can be a vital tool for offsetting passive income and other tax liabilities, leading to a lower overall tax burden.

In simple terms, a cost segregation study helps you take full advantage of the tax code, putting more money in your pocket when you need it most.