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Cost segregation isn't just for commercial properties—it can also benefit residential rental homes. By conducting a cost segregation study, homeowners can reclassify portions of their property into shorter depreciation categories (5, 7, or 15 years), leading to accelerated tax deductions. This strategy can result in significant upfront tax savings...

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Explore how cost segregation can enhance tax savings for residential rental properties. By reclassifying components into shorter depreciation schedules, property owners can accelerate deductions, leading to significant upfront tax benefits. This strategy is particularly effective for homes acquired, constructed, or renovated after 19...

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Use a cost segregation study to harness accelerated depreciation and elevate your real estate investment returns. By segmenting building components—like lighting, plumbing, landscaping—into class lives of 5, 7, or 15 years, you can significantly accelerate depreciation rather than waiting the standard 27.5 or 39 years. Co...

The IRS mandates three critical components for cost segregation studies to withstand scrutiny. First, the method must be credible—commonly either an appraisal-based or engineering-based approach, while statistical modeling is only acceptable for highly uniform properties . Second, results must be credible and grounded in property-specific data, dr...

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This page outlines the IRS’s official view on cost segregation, spotlighting its Audit Techniques Guide as a reliable, accuracy-driven tool for depreciating assets. The IRS favors cost segregation over traditional depreciation methods because it assigns the proper recovery period to each component—typically ranging from 5 to 30-plus years&md...

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