Minimize Your Tax Liability and Enhance Cash Flow
Real estate is widely recognized as one of the most advantageous asset classes, primarily due to the benefits of bonus depreciation.
The Cost Segregation strategy allows investment property owners to accelerate depreciation, enabling them to offset a significant portion of their property's value against taxable income.
This approach enhances cash flow and optimizes returns on investment. For anyone owning property that is not their primary residence, it is a highly effective, IRS-compliant strategy that offers considerable financial benefits.
Why Cost Segregation?
Cost Segregation: A Strategic Approach to Maximizing Depreciation Benefits
At Emerald Coast Cost Seg, we specialize in cost segregation, a proven and IRS-approved tax strategy that accelerates depreciation to enhance short-term cash flow.
By reducing and deferring tax liability, this strategy allows short-term vacation rental property owners and real estate investors to retain more capital, putting liquid cash back into their hands faster for reinvestment or business growth.
How Cost Segregation Works
Cost segregation is the process of analyzing and reclassifying property components into shorter depreciation schedules to maximize tax savings.
Under standard IRS rules, real estate assets are depreciated over:
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27.5 years for residential properties
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39 years for commercial properties
These long depreciation timelines result in relatively modest annual tax deductions. However, many property components—such as lighting, HVAC systems, flooring, and landscaping—can be reclassified as personal property or land improvements.
These assets qualify for much faster depreciation schedules:
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5-year (e.g., furniture, fixtures)
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7-year (e.g., office equipment)
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15-year (e.g., parking lots, sidewalks, landscaping)
By accelerating depreciation, property owners can significantly reduce taxable income in the early years of ownership, providing a substantial boost to cash flow when it’s most valuable.
Why Invest In A Cost Segregation Study?
Standard straight-line depreciation spans 27.5 years for residential properties and 39 years for commercial properties.
A cost segregation study enables you to accelerate this depreciation, allowing you to claim up to 100% of the depreciation in the current year, rather than over 27.5 or 39 years.
The result? You could receive anywhere from $40,000 to $100,000+ in tax savings per property this year.
Unlock up to 40% of your property’s purchase price through accelerated depreciation
Residential or Commercial Properties
A fully virtual study that requires less than 60 minutes of your time.
Audit-proof and supported by our team for your peace of mind.
