Real Estate Investing Glossary
Cost segregation
A cost segregation study separates a property's components, such as fixtures and improvements, into categories that are depreciated on different schedules.
A cost segregation study separates a property's components, such as fixtures and improvements, into categories that are depreciated on different schedules. It changes when depreciation deductions are taken.
Why it matters to a Las Vegas investor
Some investors use cost segregation to adjust the timing of deductions on rental property. It calls for a qualified specialist and tax advice, and it is not right for every property.
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Questions about Cost segregation
Who performs a cost segregation study?
A qualified specialist, often working with your tax advisor.
Does it change the total depreciation I can take?
It generally affects timing rather than the total, but your tax professional can confirm how it applies to you.