Cost Segregation – Accounting Tricks to Reduce Your Taxes
Normally accounting is a pretty boring subject. But what if I told you that you could eliminate your property tax bill (or reduce it to practically nothing) with an accounting trick? You still there? Good, because only a handful of people know about Residential Cost Segregation. Investors using this accounting trick, are able to accelerate the benefits of ownership and stuff the tax savings that property owners normally get over three decades into two years. Here is how it works.
If you own an investment property, you are getting a tax benefit called "depreciation" on your property. The government is allowing you to deduct the useful life of your property from your taxes in yearly increments, usually over 27 years or so. Investors rarely hold onto a piece of property for 27 years, so they never get the full tax benefit of depreciation.
One day a bunch of smart folks got into a room and came out with an idea called Cost Segregation. “Let’s reclassify our property and its fixtures into a new class that allows us the claim 27 years worth of depreciation in two years! We won’t have to pay a lick of taxes! Hurray!” They shouted.
Now it’s your turn. If you purchased any type of investment property: commercial, multi-family, or residential investment, within the last two years, you can get a specialist to reclassify your assets and accelerate your depreciation today.
Who should spend your money…you or the government? If you need a recommendation for a Cost Segregation Specialist…AskRey.