“When Cost Segregation Can
Be a Great Strategy”
To get my complete article
with all the details…
One of the greatest tax benefits of owning residential rental property, non-residential commercial, or investment property is…depreciation.
Depreciation is a deduction you get
without spending any additional money!
Unfortunately, regular depreciation for real property is slow. It can take anywhere from 27.5 years to a whopping 39 years. I’m talking about real property like:
- The building
- Improvements that have been made to the land, such as landscaping, swimming pools, paved parking areas, and fences
- The personal property inside the building that is not a building component—for example (in residential rentals), refrigerators, stoves, dishwashers, and carpeting.
But fortunately, there is a way you can speed up your depreciation deductions—especially during the first year or years you own your property:
Cost segregation
What is cost segregation?
Most property owners depreciate all these items together.
They’re using the straight-line depreciation method—the slowest form of depreciation.
But you have the option of depreciating each asset-type separately. The technical name for this type of depreciation is “cost segregation.”
Personal property and land improvements have much shorter depreciation periods than commercial or residential buildings and building components, so you can depreciate them much more quickly.
Sure there are some problems with cost segregation.
But I’ll explain them all and make sure you side-step them. To get off to the right start, read my new article…
CLICK HERE to read my completely new article titled:
“When Cost Segregation Can
Be a Great Strategy”