Cost segregation is a powerful tax strategy that allows property owners to accelerate depreciation, reduce taxable income, and enhance cash flow. This case study showcases the benefits of conducting a cost segregation study for a Single-Family Residence.
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 resulted in reclassifying approximately 44% of the property’s total basis into shorter recovery periods. The immediate tax benefits significantly enhanced cash flow and provided substantial long-term financial advantages.
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