November 2023
Real estate investors have many tax benefits available to them if they know where to look. Cost segregation is a potent tool for amassing more tax deductions earlier in a project. By breaking the costs of a development or construction project into separate assets, investors can speed up their depreciation schedules. Rather than depreciating the entire project over decades, they can depreciate some assets over a period of a few years. Under current tax law as of 2023, the depreciation period could be shorter than that. This article defines cost segregation and outlines how it can provide tax benefits for certain real estate investors.
