Additional Benefits from Past Cost Segregation Studies

[Julio Gonzalez]

As many investors are aware, a cost segregation study is a very beneficial tax planning tool that can create a very quick ROI. A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment. For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions. The study identifies with forensic engineering detail the immediate Bonus Depreciation 5, 7 and 15-year personal property class lives qualifying portions of a building that are normally buried in 27.5 year residential or 39 year commercial categories.

If you have had a cost segregation study performed on your property within the past 10 years, have you evaluated it recently for additional benefits that could be obtained? Here are some benefits that you may be missing out on.

• When assets are removed: Are You Still Depreciating Non-Existent Assets? (biggerpockets.com)
• When assets are damaged: How a cost seg study helps if an asset gets damaged! (biggerpockets.com)
• Leasehold improvements
• Assets put back into the building: Should I Get a Cost Segregation Study Before or After Rehabbing? (biggerpockets.com)
• Energy efficiencies in the building: Environmentally Friendly Tax Credits for Your Property (biggerpockets.com)
• Federal and state grants: Real Estate Grants (biggerpockets.com)

On top of the benefits noted above, here are some added tax benefits from a cost segregation study: Added Tax Benefits of Cost Segregation (biggerpockets.com)

Have you utilized a cost segregation study for any of these added benefits?