It is important to understand the concept of cost basis and how it factors into the process.
When conducting a cost segregation study, a qualified professional will evaluate your property and break down its components into different asset classes. By doing so, you can accelerate the depreciation expense of certain assets, such as personal property and land improvements, which tend to have shorter useful lives than the building itself. This can result in significant tax savings, as you can claim a larger amount of depreciation expense earlier on and reduce your tax liability.
If you want to get a jump start on an estimate follow the link below:
Follow this link to input the property information. You will need to complete the form for each property.
If you have multiple properties feel free to use the following spreadsheet.
Multiple Property Spreadsheet
