Cost segregation is basically accelerated depreciation of commercial real estate properties. You can write off more depreciation today, pay less in taxes and leave more money in your pocket. Accountants look at each improvement that is made individually versus the traditional straight line method of depreciation of improvements as a whole. Personal property depreciates faster than real property and when itemized allows the true depreciation to be written off.
Cost segregation is a great way to increase your cash flow and save money in the future. It can reduce real property taxes by reclassifying assets as personal property. The key is to use a qualified accountant. Contact us for referrals.