What is Cost Segregation?

Cost Segregation allows you to accelerate the depreciation of certain assets to current year using bonus depreciation rules—asset classes with less than 20 year life can be 100% depreciated in year one.

This can reduce passive income tax burden & accelerate your investment pace.

How is it beneficial?

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Use Accelerated Depreciation to:

  • Offset passive income with additional expense.

  • Offset earned income with up to $25,000 special allowance.

Cost Segreation breaks components of a depreciable asset into IRS recognized classes.

Kitchen

5 Year Life

  • Kitchen Counters

  • Kitchen Cabinets

  • Appliances

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15 Year Life

  • Walkway

  • Fence

Cash Flow = $4900

Let’s look at an example

Take a hypothetical 3BD/2BA rental in our area:

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Contact us for on-site assessments and IRS-compliant reports.