Cost Segregation: Six Real Estate Businesses That Can Benefit

By conducting a cost segregation analysis, property owners and others could find building components that could be depreciated, leading to tax savings.

Six stacked blue blocks to the left and one red black to the right.
(Image credit: Getty Images)

When navigating the complexities of financial management, the cost segregation method can be a helpful tool for optimizing savings within property assets. This method involves identifying and reclassifying certain building components to accelerate depreciation deduction, reduce tax liability and improve cash flow. With the right approach, this method can benefit a range of clients involved in real estate.

1. Commercial property owners.

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Derek A. Miser, Investment Adviser
Chief Managing Member, Investment Services, Miser Wealth Partners

Derek Miser serves as Chief Managing Member at Miser Wealth Partners, LLC, located in Knoxville, Tenn., and Tellico Village, Tenn. Miser Wealth Partners delivers family office services to successful retirees and entrepreneurs nationwide and in Puerto Rico. He recently published his first book, "Golden Years, Greener Pockets." This guide to tax efficiency for retirees is an excellent read for anyone contemplating or already retired.