Cost segregation is a strategic tax planning tool that allows property owners to accelerate depreciation deductions and reduce taxable income. This case study highlights the benefits of conducting a cost segregation study for a Condominium.
The goal of this study was to reclassify property components into shorter depreciation schedules to maximize tax savings and improve cash flow for the client.
The study involved:
5-Year Class Life Assets
15-Year Class Life Assets
27.5-Year Class Life Assets
This cost segregation study reclassified approximately 24% of the property’s total basis into shorter depreciation periods. The resulting tax benefits significantly improved cash flow and provided substantial long-term financial advantages for the property owner.
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