Cost Segregation is a tax strategy that identifies and reclassifies certain building components to shorten depreciation periods, allowing for accelerated depreciation and tax savings. By analyzing a property's assets, this method separates personal property and land improvements from real property, enabling owners to reduce taxable income and improve cash flow through faster deductions.
Cost segregation provides a more strategic alternative than straight-line depreciation by identifying and classifying the individual components of the building. Each component is then depreciated over its specific useful life, optimizing the depreciation process and potentially accelerating tax benefits.
Key Benefits of Cost Segregation:
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