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Tax

Cost Segregation Study

Front-load depreciation on real estate to slash current-year taxes.

Overview

A cost seg study reclassifies building components (fixtures, land improvements, personal property) from 27.5/39-year life into 5-, 7-, and 15-year buckets. Combined with bonus depreciation, you can deduct 20-35% of the building's basis in year one.

Best fit
Rental ownersCommercial real estateShort-term rental hosts
Estimated impact
$15K–$150K+ per property in year 1

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