Embracing the Harvest Season: Reaping Rewards with Tax Planning

     As the crisp autumn air settles in and leaves turn vibrant shades of red and gold, we're reminded that fall is not just a season of change, but also a time to reap what we sow. Just as farmers gather their bountiful harvests, investment property owners can embrace the fruits of their labor through strategic tax planning, particularly by employing bonus depreciation and cost segregation as part of their financial strategy.

     100% Bonus Depreciation, a valuable tax incentive, offers a unique opportunity for those who purchased buildings between September 28, 2017, and December 31, 2022. In 2023 bonus depreciation is 80%. This incentive allows you to front-load all qualified depreciation, providing significant tax benefits that can be reinvested into your properties or saved for future investments. It's similar to picking the ripe fruits first.

     Cost segregation is an essential tool in the arsenal of savvy investment property owners. This strategy allows you to identify and separate the various components of your property for tax purposes, accelerating depreciation deductions and enhancing your cash flow.

     As you enjoy the fall season, reaping the rewards of your hard work, remember that investment property owners can also harvest the benefits of smart tax planning. If you have not explored bonus depreciation and cost segregation, now is the time to consider implementing them into your financial strategy. By doing so, you can make the most of this harvest season and ensure a prosperous future for your investments.

     If you would like to discuss these strategies further or have any questions, reach out now. The Cost Seg America Team is here to help you make the most of this season of opportunity.