Tailored Solutions for Residential Real Estate Owners
Several tax incentives could financially benefit owners of residential real estate. Cost segregation studies are a great financial strategy that helps property owners accelerate depreciation and can provide valuable data that supports tax-related initiatives throughout the property’s holding period.
Apartment buildings or short-term vacation rentals are notable examples of properties that could benefit from a cost segregation study. The tax savings achieved from reclassifying assets to shorter depreciation periods can increase the property’s value and be used for future maintenance and renovation.
Cost Segregation Service Offering
During a cost segregation study, our team of tax professionals will start with a preliminary feasibility analysis to determine the property’s potential tax savings and help uncover any other valuable tax incentives that the property may benefit from. They will then collect various pieces of information to help identify different components of the residential property and work to reclassify assets from longer depreciation periods to shorter ones, thus helping accelerate tax deductions and improve the property owner’s cash flow.
How We Can Help
Since cost segregation studies involve various IRS guidelines, it is essential to work with qualified professionals who deeply understand tax law. Source Advisors has a proven track record of providing tailored solutions that help clients achieve significant tax savings while maintaining compliance with the IRS. Our diverse experience in specialized tax incentives will help ensure that the study’s findings are implemented promptly so property owners can take advantage of their tax savings as soon as possible.
