Cost Segregation
Accelerate depreciation deductions on real property purchases to offset capital gains in the same tax year
How It Works
You purchase commercial or residential rental property, ideally realizing offsetting gains in the same year
An engineering firm conducts a cost segregation study identifying components with shorter depreciable lives
Personal property and land improvements (5-15 year assets) are separated from the building (39 years)
You claim accelerated depreciation via bonus depreciation, creating large deductions to offset that income
Key Benefits
Immediate Deductions
Offset 20-40% of property cost against current year’s income
Real Asset Diversification
Convert concentrated gains into tangible real estate investments
Fast Payback
Study costs typically recovered via first-year tax savings
Who This Is For
Investors with $250K+ in taxable gains looking to offset income through real estate investment. Ideal for those wanting to diversify into property while reducing immediate tax bills.
By The Numbers
20-40%
Property Cost Deducted
$500K
Minimum Property Value
$5-15K
Study Cost
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