Cost Segregation? Standard Depreciation?

INVESTMENT IN REAL ESTATE HAS OPTIONS…

shutterstock_165755561Cost segregation deals with the depreciation of real estate enabling investors to dramatically increase the amount of depreciation they write off every year.

For many investors, this tax write-off can help restructure the cash flow of their properties, allowing them to make more income, while still increasing their tax benefits.

WHY SHOULD YOU CARE?

Shifting portions of the property to non-structural status allows a reduction of income tax by generating an extra 30% to 70% in tax depreciation deductions.  The result is increased cash flow.  Additionally,  extra depreciation converts ordinary rental income at your current tax rate to tax-deferred capital gain when you dispose of the property.  This effectively increases your return on investment.  The higher your tax bracket, the more savings to you.

To learn more, or to understand how cost segregation can work for you, read Understanding Cost Segregation