Cost segregation studies can significantly reduce taxable income by accelerating depreciation on rental properties. They reclassify certain property components, such as flooring and lighting, to shorter depreciation schedules (5, 7, or 15 years) instead of the standard 27.5 years for residential or 39 years for commercial properties. 

This method can result in substantial tax savings. For example, a $510,000 duplex study yielded $131,000 in accelerated depreciation, potentially saving $40,000 in taxes at a 30% rate. 

Although the percentage has been stepping down, it may be reinstated to 100% under the Trump administration.

Initiate a cost segregation study estimate here to determine the potential tax savings. 

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