RENT Magazine Q3'26

COST SEGREGATION FOR APARTMENTS: HOW TO BOOST CASH FLOW WITH TAX SAVINGS

Apartment owners often focus on rent growth, occupancy, and operating expenses, but bonus depreciation can be just as important to cash flow. Cost Segregation is a tax-planning strategy that separates eligible building components from the apartment structure so that certain assets may be depreciated over shorter schedules. With 100% bonus depreciation back permanently now, cost segregation is one of the most favorable tax havens for apartment owners. Before using this strategy, coordinate with your CPA and a qualified study provider. Top cost segregation service providers like Cost Segregation Guys can help review your apartment property data and prepare an engineered study that your tax advisor can use to evaluate potential tax savings.

IN THIS ARTICLE, YOU WILL LEARN: • How cost segregation works for apartment properties • Which components may qualify for • How this strategy can improve cash flow • What factors to consider before implementing it accelerated depreciation

BEFORE USING THIS STRATEGY, COORDINATE WITH YOUR CPA AND A QUALIFIED STUDY PROVIDER.

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