Tax-Smart Real Estate Strategy:
Which Properties Accelerate the Fastest?

     Are you considering cost segregation as a crucial component of your tax planning strategy for your real estate investments? If so, you're on the right path to optimizing your tax benefits, especially if you plan on expanding your property portfolio in the future. However, it's important to understand that not all properties accelerate depreciation the same using cost segregation. Let's explore how this strategy can vary across different types of real estate, based on our 21 years of experience.

1. Warehouses: Cost Segregation can identify between.....

The Difference Between "Fully Engineered and Accounted" and "Residual" Studies

     The Cost Seg America team performs a TIER ONE study, which is also called a “fully engineered and accounted” methodology. This study is forensic in its detail of both accelerated property (5, 7, and 15 year items) as well as the straight-line (39 or 27.5 year items), maximizing the allowable IRS deductions. The typical TIER THREE study, which is also called a "residual" methodology, do not provide the same level of detail in front-loaded (accelerated) property, and usually bundle the straight-line property in just a few categories.

     Why does this matter? Firstly, the Cost Seg America teams “fully engineered and accounted” methodology delivers complete asset management detail on all accelerated and straight-line items. The "residual" studies identify just the standard items and miss the hidden electrical, plumbing and mechanical details, leaving your money on the table. Secondly, the Cost Seg America teams report serves as an asset management report allowing you to easily identify future abandonment/disposition of items for future upgrades, improvements or repairs, and is in full compliance with the IRS Tangible Property Regulations.

Meet Our Team - Maximus Procopio, CSA Representative

From A Raving Fan

     "I got lucky and Max reached out to me earlier this year. Although we owned a few commercial properties, we had no idea about cost segregation and the benefits it could provide. 
     Max and the Cost Seg America team invested a lot of time to walk me and my accountant through the benefits of cost segregation, as well as the documentation that would be needed. After consulting with a number of people, we realized that this was a great opportunity and took advantage. The process was very easy, and Max checked in constantly.
     If you're interested in cost segregation, or don't know a lot about it, I highly recommend that you reach out to Max and the team at Cost Seg America."
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Thanks, Ben B

www.costsegamerica.com
888-865-4401
[email protected]

"The information contained this newsletter is meant for guidance purposes only and does not in any way constitute legal or tax advice. Readers should seek advice from their CPA or Accountant in relation to information contained in these articles."