Posts Tagged "Cost Segregation"


Today will share with you one of the best kept secrets of the IRS. It is called Cost Segregation. What is Cost Segregation? In simple terms, cost segregation is a strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes. For example, a...

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  Cost segregation breaks your real property into its components, some of which you can depreciate much faster than the typical 27.5 years for a residential rental or 39 years for nonresidential real estate. When you buy real property, you typically break it into two assets for depreciation purposes: • land, which is non-depreciable; and • building (residential is 27.5-year property; nonresidential is 39-year property). With a...

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