Cost Segregation is an application by which commercial property owners accelerate depreciation and reduce the amount of taxes owed!  I have used this myself quite successfully.  This savings generates substantial cash flow that the investor can use to reinvest into other investments or pay now their loans for principal reductions thus generating more cash flow!

 

A Cost Segregation Study is an engineering-based calculation that you can provide to your CPA. These calculations are used to change the way their commercial property is depreciated. This is an affordable, legal method of reducing income so the investor pays less in income taxes. The AICPA and Journal of Accountancy both suggest the use of Cost Segregation Studies for clients who own commercial and residential rental income properties.

 

When I sell a piece of commercial property, it is likely that my client is not taking advantage of all the tax strategies and write-downs, written to their benefit, that are available to them through new and existing tax code. This information could not only benefit them on the property they just purchased, but on others in their portfolio. Most of my clients would love additional cash flow from a reduction in their largest expense: taxes.

 

If you have an interest in this, I have a good source for this service. Schedule a call with me today.  If even you are thinking of purchasing or have already purchased.  

 

One fourplex saved me $12,000 to offset against my own tax bill!!!  I am always looking out for your bottom line!!!

 

I hope that everyone is doing well.  The Phoenix Market is absolutely on fire.  

 

Call me and as you know I answer my phone  602-688-9279.

 

Linda

5 replies
  1. Jon
    Jon says:

    Great article. It is not cheap for a cost segregation analysis but well worth it for the tax savings for the right properties. Keep the good ideas coming!

    Reply
  2. Chris
    Chris says:

    This is a perfect example of why working with Linda is priceless! Great post and read to share with clients on the fence.

    Reply
  3. Harry Delia
    Harry Delia says:

    Thanks for bringing this strategy to our attention pertaining to real estate investing. This is a great tax strategy that not many people take advantage in my opinion.

    Reply

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