Cost Segregation Blog by O'Connor Tax Reduction Experts

Commercial property owners may use bonus depreciation to significantly reduce income taxes. Cost Segregation is not a new concept, but provisions contained within the Tax Cuts and Jobs Act of 2017 have…

Cost Segregation Increases Cash Flow for Commercial Property Owners Cost Segregation Studies (CSS) have become more common because this Internal Revenue Service (IRS)-approved process reduces income tax and increases cash flow. Intelligently…

Alternative Minimum Tax consequences are not a result of cost segregation. Nor is cost segregation accelerated depreciation. Decisions regarding cost segregation and accelerated depreciation are independent by the four options as illustrated in…

As much as 95% of interior partitions and non-load-bearing walls are misclassified as short-life property. The IRS has guidelines as to when these assets may be considered personal property. Has your cost…

REITs can benefit significantly from cost segregation studies. Cost segregation minimizes ordinary income to maximize return of capital and/or capital gain related distributions. It also creates flexibility to achieve various dividend objectives….

Almost everyone understands that depreciation helps increase cash flow by reducing reportable income.  What if there was a way to “turbocharge” your depreciation and dramatically enhance your bottom line??? Active real estate…

Commercial investors are searching for ways to improve cash flow. One technique is office building cost segregation. How does cost segregation work? Commercial real property (not including the land) is depreciated over…

One of the advantages of investing in commercial property such as apartment buildings. The IRS has provisions in the tax code to reduce your tax liability. Apartment building cost segregation allows landlords…

Income taxes are a regrettable fact of life. Equally regrettable is that few real estate investors utilize the multitude of generous income tax benefits available to them. These benefits include cost segregation, depreciation,…

An abandonment study can legitimately generate a windfall of depreciation for the owner of investment or owner-occupied real estate. By increasing depreciation, substantial tax reduction can be effected. An abandonment study is appropriate when it…