1031 Exchange Library

What are the Benefits of a Cost Segregation Study?

Commercial real estate owners can generally shelter significantly greater revenue from commercial property operations due to the accelerated depreciation deductions on their income tax returns. 

Sheltering additional revenue means an immediate reduction in the amount of income taxes actually paid in the current tax year, which translates into an immediate increase in cash flow from commercial real estate operations.  It is another method by which commercial real estate investors can defer the payment of taxes.

Who Qualifies for Cost Segregation?

Generally any commercial real estate acquired or built and placed into service after 1986, including any new acquisition, real estate construction, building, or improvements, will qualify for cost segregation

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