Is a Cost Segregation Study Worth It? – Episode 752

A cost segregation study is a tax-saving opportunity that is often overlooked among investors. Because a cost segregation analysis can be so pricey, you might be wondering if it’s actually worth the tax savings.

On today’s show, I’m going to walk you through how a cost segregation works, and how to determine if it’s worth it for you. You’ll learn about the types of investors that a cost segregation study works for, the benefits of going through the study, what it costs, and so much more!

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In my experience, there are four types of people who can benefit from a cost segregation:

1. High-net worth individuals who need more tax write-offs
2. Those who would like to avoid paying high taxes
3. Investors who need to offset capital gains
4. Real estate investors who are buying at least one property per year

Here are some benefits of a cost segregation study:

• Up to 40% cash-on-cash returns in your first year of ownership
• Adding assets to your net worth on your personal financial statement
• Accelerating depreciation that ultimately allows you to turn tax dollars into equity while owning new construction real estate that cash flows
• Once you’ve executed on this unique strategy, you’ll want to tell every friend, family member, and associate about it because it seems too good to be true
• Whether you perform a cost segregation study on a single-family home, duplex, or another type of rental property, you will literally save yourself thousands of dollars in the process.

When we talk about cost vs. benefit, a cost segregation can literally save you thousands of dollars on your taxes. If you need to offset your taxes, a cost segregation study is definitely worth it.

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