How Cost Segregation Can Generate Massive Savings for Multifamily Investors

How Cost Segregation Can Generate Massive Savings for Multifamily Investors

When it comes to investing in multifamily properties, investors generally want to take every reasonable measure to increase their returns. One of the most effective ways to do this is to reduce their tax bill via cost segregation, which massively speeds up the rate at which investors can claim tax deductions. Generally, multifamily real estate has an IRS depreciation period of 27.5 years, while other commercial real estate has a depreciation period of 39 years. However, cost segregation allows investors to take their deductions over 5, 7, or 15-year periods, greatly increasing their cash flow.

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