product LP – cost segregation

Own Real Estate? You Should Know the Tax Benefits of Cost Segregation

What if, instead of depreciating your entire physical property (home, office, or other kind of business buildings) over 20 - 30 years, you could separate the various components:

HVAC system






These things wear out at different rates, so why would you depreciate them altogether across a simple schedule? Why not depreciate the components that wear out faster at a much higher rate?
This is Cost Segregation

How Does it Work?

In the first years of owning a property, you can take more considerable depreciation losses on capital. And if you don't need to take the savings at the current time, it can be passively carried over to future years. This allows you to capture that loss in years in which you made a profit and need the write-off.
This is an excellent way to make sure you don't have a lot of taxable income on that investment property in the first few years, so you can continue to grow your passive income wealth.
Also, guess what? If you missed this opportunity in the year the property was purchased; you can still have a cost segregation study done and write off ALL that depreciation you could have previously taken NOW, in the current year!

Interested in a Cost Segregation Study?