What Is Cost Segregation?

Cost segregation is a tax strategy that breaks a property's cost into components with shorter depreciation lives — like carpeting, fixtures, or parking lots — allowing an investor to front-load depreciation deductions instead of spreading them evenly over 27.5 or 39 years.

Most useful for: Homeowner · Real Estate Investor
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Cost Segregation
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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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