HUNDREDS OF THOUSANDS in tax savings you would normally wait years to realize can be realized TODAY! In one sentence, that summarizes what cost segregation does for a property. Cost segregation uses highly complex engineering methods to achieve the simple objective of pulling cash out of your property. This is fully endorsed by the IRS. One needs only to work with your own CPA to ensure it
maximizes your tax benefit
Definition: (per Wikipedia.com)
Under United States tax laws and accounting rules, cost segregation is the process of identifying personal property assets that are grouped with real property assets, and separating out personal assets for tax reporting purposes. A cost segregation study identifies and reclassifies personal property assets to shorten the depreciation time for taxation purposes, which reduces current income tax obligations. Personal property assets include a building's non-structural elements, exterior land improvements and indirect construction costs.
SO any of you out there that own investment property or are looking into investment property for clients need to look into cost segregation and save your clients thousands, which will in turn bring you new business.
If your accountant has not heard of cost segregation - or bifurcation of depreciation - you need to find another accountant!