Cost Segregation Strategy
Unlock Hidden Tax Savings in Real Estate
Accelerate depreciation, reduce taxes, and improve cash flow fast.
Cost segregation is a powerful strategy for real estate owners looking to improve short-term cash flow and reduce their tax liability. At Herbert Financial, we break down your property into individual components that qualify for accelerated depreciation—so you can write off more, sooner.
This engineering-based analysis pulls hidden value out of commercial or rental properties. Instead of a standard 27.5 or 39-year schedule, you benefit from 5-, 7-, and 15-year asset categories. It’s ideal for business owners, real estate investors, and developers seeking improved ROI. You invested in real estate—now make it work harder on your tax return.
What is a Cost Segregation Strategy?
Cost segregation is a tax planning method that allows property owners to accelerate depreciation deductions by reclassifying components of a building into shorter-life categories. These include fixtures, flooring, cabinetry, land improvements, and systems that can be depreciated over 5, 7, or 15 years rather than the full 27.5 or 39-year schedule. This results in significantly larger deductions in the early years of ownership, improving cash flow and reducing taxable income.
The process requires a detailed engineering study to comply with IRS standards and is typically applied to commercial buildings or income-producing real estate valued at $500,000 or more. When used correctly, cost segregation can save property owners tens or hundreds of thousands in taxes.
Accelerated Depreciation
Speed up tax write-offs for property assets.
Real Estate Tax Strategy
Maximize ROI with IRS-compliant deductions.
Engineering-Based Study
Analysis to reclassify building components.
Cash Flow Enhancement
Improve liquidity through larger deductions early.
Service Benefits
- Boost early-year cash flow significantly
- Reduce federal and state income taxes
- Reclaim missed depreciation retroactively
- Maximize ROI on real estate investments
Document Detail
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Get in Touch
Phone Number
+1 (818) 213-1388