Maximizing Tax Deductions: The Power of Cost Segregation Studies

💡Cost segregation studies allow you to take more depreciation expense on your real estate properties, reducing your taxable income.

💰Depreciation is a non-cash expense that can save you thousands of dollars in taxes by reducing your reported income.

🏢Cost segregation studies identify different components of a property that can be depreciated over shorter periods, increasing your depreciation deductions.

📈Bonus depreciation allows you to deduct a larger portion of short-lived property in the first year, providing significant tax savings.

🔬By segregating the cost of assets within a property, you can take advantage of shorter depreciation periods and save even more on taxes.

What is a cost segregation study?

—A cost segregation study is a study that allows you to take more depreciation expense on your real estate properties by identifying components that can be depreciated over shorter periods.

How does depreciation save me money on taxes?

—Depreciation is a non-cash expense that reduces your reported income, resulting in lower taxable income and potentially saving you thousands of dollars in taxes.

What is bonus depreciation?

—Bonus depreciation allows you to deduct a larger portion of short-lived property in the first year, maximizing your depreciation deductions and providing significant tax savings.

How does a cost segregation study benefit real estate investors?

—Cost segregation studies can significantly increase depreciation deductions, reducing taxable income and saving real estate investors thousands of dollars in taxes.

Who should consider a cost segregation study?

—Real estate investors who own properties with components that have shorter useful lives, such as fixtures and appliances, should consider a cost segregation study to maximize their tax savings.

00:00In this video, we discuss the power of cost segregation studies for maximizing tax deductions.

02:22A cost segregation study allows you to take more depreciation expense on your real estate properties.

03:32Depreciation is a non-cash expense that can save you thousands of dollars in taxes.

05:46Cost segregation studies identify different components of a property that can be depreciated over shorter periods.

07:56Bonus depreciation allows you to deduct a larger portion of short-lived property in the first year, providing significant tax savings.