How does the Cost Segregation process work?
Submit your info
Send us your Closing statement or the Street address and purchase price. That's all we need to get started.
We send you free proposal
Within 24 hours, we send you back a free estimate of how much we can save you on taxes. Review the finding with your tax professional and we can move forward.
We visit to your property
We do a comprehensive walk-through. This will help us find you additional tax benefits. If you prefer we do a virtual visit through Facetime, we are set up to handle that as well. Our experienced cost segregation professionals have walked thousands of properties that allows us to leave no stone unturned.
We send you final report
After our walkthrough, we send you and your CPA a final report within 72 hours, which highlights the total depreciation expense for the property and include an itemized detail of each building component.
Reduce your taxes
What's the benefit to me?
Over 17 years, we have saved our clients over $2 Billion in taxes.
- Straight-line Depreciation.
- Most people use straight line depreciation. Which means they depreciate the value of their property by 27.5 years. If you have a $10M property, that results in ~$360k per year in depreciation.
- Cost Segregation.
- Instead, we itemize every part of your property. Roofs, Windows, Doors, etc. And apply a useful life (not just a broad 27.5 years) to each item. This results in a higher depreciation amount. As an example, we may increase that depreciation to $2.8M in year one. This results in a much larger tax defferal to you.
Most Real Estate property qualifies
Does my Property qualify for Cost Segregation?
Excluding your primary residence, most real estate that was built after 1986 qualifies for Depreciation. Below are some of the most common types of Real Estate that qualify.
What's the catch?
No catch. Section 1245 of the IRS Tax code states that property, equipment, furniture, and fixtures are eligibile for cost segregation studies.
Cost Segregation is for anyone who wants to reduce their taxable income. It was implemented in TKTK through the JOBS act in order to provider additional tax benefits for Real Estate owners and investors.
However, cost segregation likely shouldn't be used for people who are planning to sell their property within the next 12 months.
This is because of depreciation recapture. Cost segregation is a way to defer taxes, not fully eliminate them. When you sell your property, the depreciation you took in prior years, gets "added back" to the sales price. However, you can typically offset these gains by taking depreciation on another property.
Our track record
Trusted by hundreds of clients for almost two decades
We pride ourselves on delivering high-quality work for clients.
- Taxes Deferred for Investors
- $2.3 Billion
- Cost Seg Studies Performed
- Years in Business
- NPS Score from Clients
We have delivered on our promises for hundreds of amazing people