Two Birds, One Stone: Leverage Tax Benefits and Write Off All Impaired Assets

Over the past several years, the use of cost segregation studies as a means of lowering income taxes has gone from being a niche practice utilized by the savviest of real estate investors to an almost standard part of purchasing commercial properties, whenever applicable. This has come about for two reasons.

First, the increase in boutique service providers has allowed greater market coverage. In the past, only the larger accounting firms offered this service to their clients. The opening of exclusive, cost segregation-only practices has allowed even the smallest property owners to reap the benefits of a cost segregation study. Additionally, general industry knowledge of the concept—that of merging the combined specialties of engineering and tax accounting to accelerate the depreciation of commercial real estate—has continuously increased via networking, social media and educational seminars at real estate industry conferences.