Cost Segregation | Business Taxes |Rea CPA

Unlocking Hidden Value with Cost Segregation at Rea & Associates 

Discover the power of Cost Segregation, a strategic tax planning tool for anyone who has constructed, purchased, expanded, or remodeled property. Cost Segregation can be your key to increasing cash flow by accelerating depreciation deductions and deferring federal and state income taxes. 

What is Cost Segregation? 

Cost Segregation is a proven method that allows us to meticulously examine the components of your real estate investment, identifying opportunities for quicker write-offs. Rather than spreading depreciation uniformly over 27 ½ or 39 years, we pinpoint elements that can be depreciated over 5, 7, and 15 years, leading to significant tax savings. 

How Does a Cost Segregation Study Benefit You? 

When you acquire a property, you're not just buying the building structure but investing in its interior and exterior improvements. Typically, 20 to 40 percent of these improvements fall into tax categories eligible for accelerated write-offs. Our comprehensive Cost Segregation study dissects the construction cost or purchase price, revealing opportunities for faster depreciation, significantly reducing your tax burden. 

At Rea & Associates, our approach goes beyond the standard Cost Segregation study. We meticulously separate different building structural components, such as the roof, windows, or HVAC units. This additional breakdown of the building positions you to claim a loss deduction when replacements are necessary. 

Partner with Rea to unleash the hidden value within your real estate investments through our specialized Cost Segregation services. Contact us today to start optimizing your cash flow and minimizing your tax liability. 

When to Consider a Cost Segregation Study: 

Timing is key when it comes to maximizing the benefits of a Cost Segregation study. While it can be conducted at any point after the purchase, remodel, or construction of a property, the optimal time for new owners is during the year a building is constructed, purchased, or remodeled. If you’re in the planning phases of construction or remodeling, the best time to explore a Cost Segregation study is before your building's infrastructure is set. 

Rea recognizes the importance of strategic planning. We offer a complimentary preliminary analysis to guide investors in determining the most opportune time and effective strategy for their unique situation. Unlock the full potential of your property investments through strategic Cost Segregation. Contact us today to schedule your complimentary analysis.