How Cost Segregation Can Benefit Property Owners and Managers
By David Crown, Chief Executive Officer, Los Angeles Property Management
Class is now in session!
Today you’ll learn how cost segregation can lead to accelerated depreciation of an income property. Now, before we begin, I want to clarify that I am neither an attorney nor an accountant, so please don’t take the advice of this article without first consulting your licensed attorney and accountant. But this month’s article is as much about investment as it is about property management, because at I believe understanding investment strategies can help managers see the income properties they manage from an owner’s perspective, and offering this benefit to clients can set managers apart in the field. While some of the terminology may sound complicated, the end result of this combination is simple: it’ll save rental property owners money.
I can remember a time when I was fully ready to send a check to the IRS for an $80,000 tax payment on a property I owned. I had already stamped the envelope when I received a last-minute call from a colleague advising me to look into cost segregation. With one call to my accountant, I saved all that money. Consider this your last-minute call.