RENT Magazine Q4'23

Is the cost worth it? Q: A good cost segregation firm prices each project individually, and it is based on the type of building and the complexity of the project. It is not a cookie cutter one price fits all process. The return on investment typically falls between 10:1 and 20:1. Before you decide to start the cost segregation study, you will be provided with a return-on- investment estimate. A company such as Cost Segregation Services, LLC (CSSI) can provide you with a complimentary analysis, a Net Present Value Schedule, and other materials to help you determine your value in doing a study. It has to be right for you! A cost segregation study taps into the time value of money because you’re able to depreciate your property faster and take advantage of tax deductions now versus in the future. A: • Will you be alive 40 years from now to use future deductions? • If you won the lottery, would you take the payout today or spread it out over 27.5 or 39 years? • What will your dollar be worth in the future, given inflation? 75¢, 50¢? Isn’t it better to get to use the full value now? QUESTIONS TO ILLUSTRATE THE TIME VALUE OF MONEY:

DEPRECIATE YOUR PROPERTY FASTER AND TAKE ADVANTAGE OF TAX DEDUCTIONS NOW VERSUS IN THE FUTURE.

PAGE 16

Powered by