Cost Segregation

[vc_row][vc_column width="1/2"][vc_single_image image="6872" img_size="full"][/vc_column][vc_column width="1/2"][vc_empty_space height="42px"][vc_empty_space height="42px"][vc_column_text] What is a Cost Segregation Study? [/vc_column_text][vc_empty_space height="42px"][vc_column_text] Owning or developing commercial real estate comes with its fair share of complexities. Among these, a cost segregation study stands out as a potent tool that many property owners overlook. This powerful strategy can significantly maximize depreciation deductions and lessen the tax burden for commercial property owners. Why is it so often overlooked? The...

[vc_row][vc_column width="1/2"][vc_single_image image="6844" img_size="full"][/vc_column][vc_column width="1/2"][vc_empty_space height="42px"][vc_empty_space height="42px"][vc_column_text] Can you do a Cost Segregation Study yourself? [/vc_column_text][vc_empty_space height="42px"][vc_column_text] If you're a property owner wondering, "Can I do my own cost segregation study?" the answer is yes! Many investors are turning to DIY methods for cost segregation to save on the significant costs associated with hiring a professional - which can range from $15,000 to $25,000. Cost segregation is a...

Real estate investment has long been considered a reliable and profitable business. However, property owners and investors are constantly looking for ways to maximize their returns and minimize their tax burden. One often overlooked, yet powerful strategy is cost segregation. In this blog post, we will discuss how cost segregation can improve your real estate investment ROI and why you should consider implementing it in...

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Adjusted Basis To figure your property's basis for depreciation, you may have to make certain adjustments (increases and decreases) to the basis of the property for events occurring between the time you acquired the property and the time you placed it in service for business or the production of income. The result of these adjustments to the basis is the adjusted basis. Increases to basis.  You must increase...

Basis of Depreciable Property The basis of property used in a rental activity is generally its adjusted basis when you place it in service in that activity. This is its cost or other basis when you acquired it, adjusted for certain items occurring before you place it in service in the rental activity. If you depreciate your property under MACRS, you may also have to reduce your...

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The real estate market continues to grow, even with changes to tax incentives such as the reduction in bonus depreciation from 100% to 80% in 2023. But with cost segregation and other tax strategies, real estate investors and developers can still enjoy significant tax benefits. Cost segregation involves reclassifying assets within a property, such as electrical systems and plumbing, as personal property for faster depreciation. This...