Are you looking to maximize your tax deductions as a real estate investor? Cost segregation might be the answer. This strategy allows you to reclassify certain property components, accelerating depreciation and potentially saving thousands in taxes.
Key points:
Cost segregation breaks down renovation costs into different asset classes
It can shift depreciation from 27.5 or 39 years to as little as 1-7 years
Especially beneficial for short-term rentals and commercial properties
Can be done yourself with detailed invoices from contractors
Consider professional analysis for past-year segregation
Remember: Always consult with a qualified tax professional before implementing any tax strategy.
