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Tax Reform Makes Cost Segregation Even More Beneficial

By JOHN BLAKE, CPA

July 2, 2019

Cost segregation studies should be in the back pocket of every commercial real estate investor. When optimized, they can increase cash flows, reduce tax liability, and uncover missed deductions. And thanks to the Tax Cuts and Jobs Act of 2017, the benefits are more favorable than ever before.

A cost segregation study is a strategic planning tool that commercial real estate owners and investors can use to improve their tax positions. These studies assess an entity’s real property assets and identify a portion of those costs that can be treated as personal property. By segregating personal property from the building itself, the studies will be able to reassign costs that would have been depreciated over a 39-year period to asset groups that will be depreciated at a much quicker pace, or perhaps even expensed immediately.

About the Author

John focuses on helping with the tax needs of real estate, technology and manufacturing, distribution, and wholesale companies. He works with management and business owners to review their business plan, tax planning process, identify additional saving opportunities, and ensure compliance and reporting deadlines are met. Also, John helps educate clients about the new opportunities available...

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