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Are you a multifamily investor?

Are you a multifamily investor?<br>Here is what you should know about cost segregation

expertcostseg
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Are you a multifamily investor?

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  1. Are you a multifamily investor? Here is what you should know about cost segregation www.expertcostseg.com

  2. The returns from multifamily investments are usually from income, appreciation or tax benefits.However tax benefits are very less known. Real estate assets tend to wear out over time and hence the owners have an option to depreciate the value of their property every year. One way this can be done is using a strategy named cost segregation.

  3. It is a strategy that property owners use to maximize their depreciation every year. In the absence of cost segregation multifamily assets can be depreciated using the straight line depreciation method over a period of 27.5 years An introduction to cost segregation But with cost segregation every part of the property is segregated into various buckets and depreciation is accelerated for each of these By segregating a property into different buckets and depreciating it into shorter periods depreciation can be increased and hence tax liability can be reduced

  4. Understanding the same with a simple example TAKING THE STRAIGHT LINE METHOD INTO CONSIDERATION Let's assume the property is worth $1million Applying the above depreciation method $1million is divided by 27.5 Thereby, the depreciation each year would result to $36,363 COMING TO COST SEGREGATION The components of a property are segregated into different buckets. Parking lot fall under land improvements and can be depreciated over a period of 15 years Kitchen appliances come under personal property & are depreciated over 5 years

  5. Cost Segregation: Categorizing a multifamily property Personal Property Land Improvements Building Land Includes furniture & fixtures, carpenting & window treatments Includes side walls and fences. Includes roof, plumbing,etc Any amount that doesn't fall in the above three come under this Depreciated over 5 or 7 years Depreciated over a period of 15 years

  6. Cost Segregation AN EFFECTIVE STRATEGY TO LOWER YOUR CURRENT TAX LIABILITY! Initiating a study can be difficult but will result in better tax savings. Visit www.expertcostseg.com & get a free analysis done for your property

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