Discover the tax-saving benefits of Cost Segregation with Bement & Company. Cost segregation is a powerful tax planning tool that reclassifies components of your rental property to allow for accelerated depreciation deductions. Traditional depreciation spreads costs over 27 to 39 years, but with cost segregation, some parts can be depreciated much more rapidly—sometimes even in the first year.
How Cost Segregation Works Our detailed studies break down your property into components with different depreciation timelines, including many that qualify for “bonus” depreciation. This shift can significantly enhance your tax benefits, allowing substantial portions of your investment to be written off quickly. For example, under current tax laws, certain property elements can be 100% deductible in the first year, although this will decrease through 2025.
What Qualifies? Qualifying components typically include flooring, appliances, furniture, fixtures, and non-structural improvements like insulation. Outdoor elements like fences and landscaping may also qualify.
The Financial Impact By opting for a cost segregation study, you can realize immediate tax savings, effectively putting cash back in your pocket by reducing your current year’s tax liability. We provide a preliminary estimate of potential savings to show you the direct benefits before proceeding.
Considerations and Pricing The cost of our comprehensive service varies, typically ranging between $1,500 and $8,000, including detailed analysis, summary report, and filing bonus depreciation on your tax returns. While this approach can reduce your tax burden today, it’s important to consider potential impacts on capital gains tax if you plan to sell in the future. However, strategies like 1031 exchanges may help mitigate these effects.
Watch the Video Below to see how Cost Segregation and Real Estates deductions work:
Get Started To maximize your property’s potential and explore cost segregation for your rental property, fill out the form below and we will reach out to you, schedule a free consultation, or directly contact our firm. You will need to provide details such as the property address, acquisition specifics, property tax information, and photos of the property.
At Bement & Company, we are dedicated to maximizing your financial outcomes using every strategy available, including cost segregation. Let’s unlock the full potential of your real estate investments together.
