When you classify assets like this, it speeds up the depreciation process by a significant amount, allowing you to save a lot of money on taxes.
The primary reason property owners do cost segregation studies is to optimize tax deductions which can increase your cash flow and gain more return on your investment.
Classifying these assets with a cost segregation study and breaking down a real estate purchase into various parts like this has two main benefits:
First, it can help you save on taxes in a shorter amount of time.
Second, it makes it easier to write off future replacements of individual components when they lose their value.
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Commercial Property $5,950
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