Cost Segregation: The Real Estate Investor's Best-Kept Secret

Cost Segregation Explained

Cost segregation is an IRS-approved strategy that lets real estate investors accelerate depreciation on components of their properties.

The Basics

Instead of depreciating a building over 27.5 or 39 years, a cost seg study identifies components that qualify for 5, 7, or 15-year depreciation schedules.

The Impact

On a $1M property, a cost seg study can generate $150,000–$300,000 in first-year deductions.