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Today, JP Komorny joins us to discuss cost segregation. JP started around twenty years ago as a junior accountant at one of the big four accounting firms in Manhattan. He ended up in the real estate division of the corporate tax department and started working with cost segregation, which focuses on the asset reclassification of commercial real estate.
What is cost segregation? Ultimately, cost segregation is an asset reclassification strategy to accelerate the depreciation deductions that currently exist, increasing the number of deductions and reducing taxable income.
For a small fee, cost engineers and accountants perform an analysis on the property. That analysis is tax deductible. In return, you receive an increased number of depreciation deductions in the early years of owning the property. The price of cost segregation is equal to 1% of the value you will get back in tax savings.
This is only the beginning. If you have any questions, give us a call or send us an email. We look forward to hearing from you!
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