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The basics of cost segregation

March 15, 2022 Video 3 min watch
Jonathan Winterkorn Lawrence Knutson Jeremy Sompels
Many owners of income-producing real estate are unaware that they can maximize the tax savings on their investments with an IRS-approved project called a cost segregation study. Are you one of them?
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With a cost segregation study, you can take full advantage of tax-saving strategies that will reduce your tax liability, improve near-term cash flow, and help boost your bottom line.

What is cost segregation?

Simply, cost segregation is a tax deferral strategy that identifies assets within a building that can be depreciated over a shorter period than the 39-year standard method. It can identify substantial tax-saving opportunities for taxpayers who have constructed, purchased, or renovated a facility. The process combines engineering, construction, and tax expertise to maximize tax deductions for prior and current real estate investments.

Our team of tax experts, which includes accountants, engineers, and attorneys, will conduct a thorough, multifaceted cost segregation study that reveals and quantifies items that qualify for a shorter depreciable life. The result? You’ll be able to:

  • Take advantage of bonus depreciation.
  • Use the extra cash flow to invest in additional income-producing properties.
  • Leverage the value of your depreciable assets for renovations and improvements.
  • Accelerate your tax depreciation.
  • Save tax dollars from your depreciable asset investments.

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