Cost Segregation is a powerful tool for real estate owners to save money on taxes. It increases your cash flow by reducing your taxab2 Columnle income.
Saved on Taxes
Properties
"DEPRECIATION UNLOCK was able to do a cost segregation study quickly, without an onsite visit. They used a video call with an onsite employee. It saved me tons of time and money. Nice job!"
Country Club
"My experience with each level of the process was seamless. The communication was great and the ability to do a virtual visit was very easy."
Short Term Rental Home
Properties
"Great team to work with - The process was simple and quick! I would highly recommend if you’re looking to do a cost segregation report."
Retail Facility
We help real estate owners identify faster-depreciating assets and reclassify them into their IRS-approved categories.
Cost segregation reduces your taxable income. You pay less tax and hold on to your money for your next investment.
Cost segregation can help you maximize the value of your real estate investments and increase profitability.
Short Term Rental
Self Storage Facilities
Apartment Complexes
Shopping Centers
Gas Stations
Office Buildings
Warehouse Facilities
Hotels & Motels
Restaurants
Nursing Homes
Ranch & Agricultural
Industrial Manufacturing
We tour your property quickly and easily using the technology that already exists on your cell phone. Less travel means less overhead that we are able to pass on as savings to our customers.
Our studies are performed by a team of experienced engineering experts, using the Replacement Cost New Less Depreciation methodology. We stand by our conclusions and we are experienced in assisting clients before the IRS. Audit support is provided at no additional charge to our clients.
Our goal is to help our clients defer taxes. We will work with you and your CPA to ensure a cost segregation study is a good fit. We want the cost seg process to be painless and after completing the study we share an excel copy of the fixed asset schedule to make your accountant’s job easier too.
Provide us with your basic property details. This information will form the backbone of your custom proposal that will include your estimated tax savings. We will reach out to you if we require additional information.
Once you sign we collect any supporting documentation. No appraisal? No problem. Let our team know and we will work to evaluate your property with only the documents you already have.
If you choose our Fully Engineered service, we will collect additional details, schedule your site visit, and give you all the info you need to prep. For Rapid Reports, no site visit is necessary.
Our expert engineers evaluate your property details and create your custom report. Once completed we provide a final pdf report as well as the fixed asset schedule to share with your accountant.
From remote cabins in Colorado to shopping centers in New York City - we have been there, done that. Our team is ready to tackle your project - big or small.
Invester
Best customer service, hands down. Just fantastic to work with, from start to end, very accommodating with so many changes I requested. Even for the rapid reports attention to the details was clear from the reports. Overall LOVE IT!! I will use them again and will also refer to my friends and clients.
Invester
Great communication throughout! They made the process pretty simple and they followed through appropriately and the cost seg analysis was completed very quickly! Highly recommend!
Invester
Bought this property September last year.
Did a cost seg study in January
Depreciated $162,000.
Saved $56,000 in taxes this year.
This is the craziest tax strategy.
Our team of experts will work with you to identify potential
savings and make the process easy and hassle-free.
Yes, The cost segregation study serves as a valuable tool for your CPA to optimize property depreciation. It is a one-time process with no specific timeframe for completion. If you intend to leverage the study for a particular tax filing, it remains valid for that tax year as long as the property was placed in service within that same tax year or prior. The report holds its validity as long as it is submitted before you file your taxes, irrespective of the year in which the study was conducted.
It's essential to differentiate between active income, earned through employment or business activities, and passive income, derived from investments or rental properties. Unless you are a Real Estate professional, you may not apply losses from a Cost Segregation to offset your W2 Income.
However, in the case of short-term rentals, income generated from renting out a property is generally considered passive. Yet, if the taxpayer actively manages and maintains the rental property, there may be an opportunity to offset this passive income against their active income. Consulting with your tax professional is advisable to determine your eligibility for such adjustments.
If you are planning to sell the property in a taxable transaction a cost segregation study may not make sense because of recapture.We generally recommend you hold a property for at least 3-5 years.
However, if you are planning to enter into a like-kind exchange (non-taxable transfer of your property for another property) you will not have depreciation recapture issues until you sell the replacement property.
You can have a look-back study done on assets acquired as far back as 1987 and claim the resulting write-offs using the 3115 Automatic Change without amending prior-year tax returns.
There are diminishing returns to performing a study the longer you own and depreciate a property. Contact us to determine if your property is a fit for a cost segregation study.
The best time to perform a cost segregation study is within the tax year that the building is purchased or construction is completed.
We pride ourselves on offering affordable cost segregation studies for every budget and property type. Our self-directed Rapid Report (available for smaller residential properties, up to 4 units) is available for $950. Fees for our Fully Engineered Study vary based on square footage, property type and complexity. Compare our cost segregation study services or request a free proposal for your property here.
Any type of income-producing property placed into service after 1986 qualifies for cost segregation. We frequently work on residential such as short-term rentals as well as commercial projects.