Real Estate Investors of Nashville

WHAT IS COST SEGREGATION
Cost segregation is the method of re-classifying components and improvements of your commercial building from real property to personal property. This process allows the assets to be depreciated on a 5, 7, or 15-year schedule instead of the traditional 27.5 or 39-year depreciation schedule of real property. So, your current taxable income will be greatly reduced, and your cash flow will increase.
COST SEGREGATION OVERVIEW
By accelerating depreciation, this strategy will reduce income taxes by $35,000 for every $500,000 in building cost basis owned. Cost Segregation is an Engineering service so most CPA’s will not do this for you.