Cost Segregation Tax Strategy Services
Tailored for Short-term
Vacation Rental properties
Minimize Your Tax Liability and Enhance Cash Flow
As a vacation rental property owner, are you tired of struggling with high taxes and limited cash flow? Cost Segregation could be the solution you've been searching for.
With this powerful strategy, you can unlock valuable tax benefits and boost your cash flow.
MAXIMIZE YOUR TAX SAVINGS
Contact us today to discover how you can reclaim up to 40% of your property's value in tax deductions this year!
How Does Cost Segregation Work?
Cost segregation is a powerful tax strategy that allows real estate investors to accelerate depreciation on their investment properties.
By identifying and reclassifying certain assets for faster depreciation, investors can significantly reduce their federal and state income tax liabilities.
This approach not only maximizes cash flow but also frees up capital for reinvestment, property improvements, or other financial opportunities.
Identify and Reclassify
We assist real estate owners in identifying assets that qualify for accelerated depreciation and strategically reclassifying them into IRS-approved categories. This process maximizes tax savings, improves cash flow, and enhances the overall financial benefits of property ownership.
Minimize Taxes
Cost segregation lowers your taxable income, allowing you to pay less in taxes and retain more of your money for future investments, property upgrades, or business growth.
Increase Profitability
Cost segregation helps you maximize the value of your real estate investments by accelerating depreciation, reducing tax liabilities, and increasing overall profitability.
What is a Cost Segregation Study?
Strategic tax planning utilizing IRS-accepted income tax tools
A Cost Segregation study is a detailed analysis conducted by tax professionals, engineers, or specialized consultants to identify and separate the various components of a commercial or rental property for tax purposes.
The objective of the study is to reclassify assets from longer depreciation periods to shorter ones, in order to accelerate tax deductions and improve cash flow for the property owner.
Unlike the entire building, which is depreciated over a standard lifespan of either 27.5 years for residential properties or 39 years for commercial properties, your property's subcomponents (such as lighting fixtures, heating and air conditioning systems, and other elements) that also depreciate over time have shorter depreciation lifespans of 5, 7, or 15 years. This allows for larger depreciation deductions, especially in the initial years of ownership.
During a study, the property is thoroughly examined, and its components are categorized into different asset classes, each with its own depreciation schedule according to the IRS guidelines.
By identifying and segregating these assets, these studies allow property owners to maximize their tax savings and increase cash flow. It’s important to note that a study should be performed by qualified professionals, as it requires a deep understanding of tax law, construction techniques, and engineering principles.
Our simple 4 step process saves you time & maximizes your savings
Step 1: Request Your Free Proposal
Simply provide your basic property details, and we’ll create a customized proposal outlining your estimated tax savings. If additional information is needed, we’ll reach out to you.
Step 2: Confirm Property Details
Transform your cost segregation study into real world tax savings. FAST.
Once you sign our engagement letter, we gather any necessary documentation. No appraisal? No problem. Our team can assess your property using the documents you already have.
Step 3: Select Express or Engineered Study
Our team of engineers conducts your IRS-compliant cost segregation study using your property details, focusing on maximizing your tax savings.
Step 4: Unlock Tax Savings
Our expert engineers assess your property details and generate a customized report. Once completed, we deliver a final PDF report along with the fixed asset schedule for you to share with your accountant.