For property owners - Cost Segregation Studies get you money back.

[Kyle Porter]

Hey y'all! I've been diving into the world of cost segregation studies and its pretty neat. TLDR - it accelerates depreciation and you greatly reduce the amount of taxes you owe. Let me know if you have experience with cost seg or you're interested in doing one! Cheers!

Via the IRS:

Cost segregation studies are most commonly prepared for the allocation or reallocation of building costs to tangible personal property. A building, termed "§ 1250 property", is generally non-residential real property (39-year) or residential rental property (27.5-year) property eligible for straight-line depreciation. Equipment, furniture, and fixtures, termed "§ 1245 property", are tangible personal property. Tangible personal property has a shorter recovery period (e.g., 5 or 7 years) and is also eligible for accelerated depreciation (e.g., double declining balance, bonus depreciation and § 179 deduction). Therefore, a faster depreciation write-off (and tax benefit) can be obtained by allocating property costs to § 1245 property

[Julio Gonzalez]

Cost segregation studies can be incredibly beneficial for property owners depending on the property and tax payer situation. Here are some additional FAQs on cost segregation!

https://www.biggerpockets.com/forums/51/topics/1113749-cost-...