A cost segregation study pulls decades of building depreciation into this year's return. Most rental property owners have never had one run. See your number in 30 seconds — free.
When you buy a rental property, the tax code treats the whole building as one thing that wears out over 27.5 years. So you deduct a thin slice each year and pay tax on the rest.
But a building isn't one thing. The carpet, appliances, cabinets, light fixtures, driveway, fencing and landscaping all wear out far faster than the structure — and the tax code has always allowed them to be depreciated on 5, 7, and 15-year schedules instead.
A cost segregation study is the engineering analysis that separates them out. Large real estate firms have done this for decades. Individual owners usually never hear about it, because nobody's job is to tell them.
The result is a large deduction in year one instead of a small one spread across three decades — and because of inflation and the fact that most investors sell long before year 27, taking it now is worth substantially more than taking it later.
Most owners who've heard of cost segregation still don't do it, because it sounds like a project. It isn't. You answer a few questions about the property and we handle the rest — including the part where your accountant has to actually use it.
Send us the address and what you paid. We'll come back with your projected first-year savings — free, no obligation, and we'll tell you straight if it isn't worth doing.