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  Cost segregation is a highly beneficial and widely accepted tax planning strategy utilized by real estate investors to increase cash flow.  Cost segregation studies can benefit taxpayers who purchase, construct, expand, or renovate real estate property.  A study can take the cost of each component of a qualifying real estate investment and reclassify and break it down among shorter recovery periods; in turn, you can accelerate depreciation and increase cash flow.  WHAT IS COST SEGREGATION: Cost segregation is a highly beneficial tax planning strategy utilized by real estate investment companies to accelerate depreciation deductions, defer tax and improve cash flow.  Cost segregation studies can benefit taxpayers who purchase, construct, expand, or renovate real estate property.  A study can take the cost of each component of a qualifying real estate investment and reclassify and break it down among shorter recovery periods; in turn, you can accelerate dep...

  Cost Segregation studies offer a powerful way for commercial building owners to unlock depreciation deductions, reduce their tax burdens and boost cash flow by reclassifying certain real property assets as personal property. Cost segregation is a conservative and IRS-defined approach for depreciating commercial properties. It is the most accurate depreciation methodology for assets acquired after September 27, 2017. In order to determine if a cost segregation study is appropriate for you, consult with your CPA at the beginning of the process. This will make you feel confident that an appropriate and cost effective study is conducted, by bringing your accounting professionals together, when you acquire or develop a property. Advantages of a Cost Segregation Study The main advantage of obtaining a Cost Segregation study is that it can shorten the useful lives of assets under accelerated depreciation methods.  A taxpayer can reduce the current federal taxable income by taking ...