Cost segregation is a tax strategy used by real estate investors to accelerate their depreciation deductions and reduce their tax burden.
This strategy allows the investor to claim higher depreciation deductions in the early years of owning the property, which can result in significant tax savings. Essentially, cost segregation is a way to optimize the tax benefits of owning real estate.
If you make money in another field, you can only deduct these paper losses against your active income in one of two ways:
- If you are a real estate professional
- Using the short term rental loophole
To do this, you will need a cost segregation for your property.
Engineered Tax Services
I trust Engineered Tax Services for all my cost segregation needs. Specifically, I recommend requesting Kim Lochridge as your tax expert.
I’ve found their cost segregation services thorough, efficient, and I just love working with Kim. She’s a longtime real estate investor and a wealth of knowledge in regards to advanced tax techniques.
If you want to see the actual numbers behind a successful cost segregation and accelerated depreciation process, you can read my own experience:
How a Cost Segregation with Engineered Tax Services got me a $105k Tax Refund
Click HERE to access the Darwinian Doctor affiliate link to Engineered Tax Services, and make sure to mention you were referred from this blog for the best service!
