Cost segregation is an advanced tax strategy that helps property owners accelerate depreciation, reduce taxable income, and improve cash flow. This case study illustrates the advantages of performing a cost segregation study for a Multi-Family Rental.
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 38% 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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