Many investment property owners are unaware of the benefits available through an IRS approved property depreciation process known as Cost Segregation. And, with the recent Tax Reform and Jobs Act, Cost Segregation has gotten even better for the average investment property owner.
Let me take a moment to explain the concept which underlies Cost Segregation for you. We are all familiar with how investment property is depreciated for tax purposes, correct? For instance, we know that for the IRS, investment properties are separated between the land and improvements right? Obviously, land cannot be depreciated, but since buildings and the fixtures within them age and deteriorate over time, their value can be written off for tax purposes.
So, you may be asking how does Cost Segregation influence the depreciation process? Like this. Cost Segregation allows you to recategorize some of your property’s fixtures and apply an entirely new depreciation schedule for writing them down on your taxes. And, the end result is that by accelerating this depreciation, you can dramatically increase the cash flow and investment performance of your property. Pretty good, right?
Now, our goal for this Cost Segregation Planner is to gather enough transactional and property data within a simple and easy to follow interface (similar to TurboTax), so I can actually walk you through the typical cost segregation mathematic computations and we can arrive at exactly how much a cost segregation strategy could make you should you choose to change how you report your depreciation. Let's get started, shall we?
This is the team behind the Cost Segregation Planner as well as the tax experts responsible for creating the IRS approved strategies which are found in our Cost Segregation Studies.
We're always interested in hearing from you.