Principal Cost Segregation Associates, a firm specializing in cost segregation services, is expanding its offerings to include both short-term and long-term properties. This move is a response to the growing demand for tax-saving strategies in the rental property market, providing property owners with a strategic way to maximize their return on investment.

Cost segregation is a tax planning tool that allows property owners to reclassify certain components of their real estate assets to accelerate depreciation deductions. Typically, buildings are depreciated over a long period – 27.5 years for residential properties and 39 years for commercial properties. However, a cost segregation study breaks down the property into individual components – electrical systems, furniture, landscaping, and fixtures – which may qualify for shorter depreciation periods of 5, 7, or 15 years. This reclassification allows property owners to front-load their depreciation expenses, resulting in significant tax savings in the early years of property ownership.

Until now, Principal Cost Segregation Associates primarily focused on commercial real estate properties. With this new expansion, the firm is positioned to assist short-term and long-term property owners in unlocking hidden tax benefits.

“We’re thrilled to extend our expertise to the short-term and long-term rental market,” said Andrew Griffith, Founder of Principal Cost Segregation Associates. “Our services help property owners of all sizes, from single rentals to large portfolios, uncover hidden tax benefits and improve profitability.”

Benefits of Cost Segregation for Short-term and Long-term Properties

The strategic value of cost segregation lies in its ability to provide immediate tax relief. By accelerating depreciation, property owners can defer taxes and retain more of their earnings in the short term. This is particularly useful for real estate investments where cash flow is a critical component of success.

With the additional capital, owners can undertake renovations, repay debt, purchase new properties, or invest in other opportunities to enhance their portfolio’s value. Cost segregation can also serve as a hedge against future tax rate increases by allowing property owners to claim deductions earlier when they may be more valuable. Furthermore, it can be used in estate planning and succession planning. By reducing the tax burden on a property, owners can provide a more substantial legacy for their heirs.

Principal Cost Segregation Associates has already seen success with its cost segregation services for rental properties. In a case study they did for a short-term rental property investor with a property valued at $387,000, the firm identified assets that could be reclassified into shorter depreciation categories. Leveraging the 100% bonus depreciation provision under the Tax Cuts and Jobs Act, Principal Cost Segregation Associates has helped the client realize nearly $57,000 in tax savings in a single year.

This is just one of the many successful cases they’ve had over the years.

Delivering Expertise in Cost Segregation

Principal Cost Segregation Associates brings over 50 years of combined experience in property analysis and cost segregation to every project. They offer a streamlined process that starts with a brief consultation to determine the potential benefits of a cost segregation study for their specific rental property. Following a detailed property survey, clients receive a comprehensive report that highlights all the available tax-saving opportunities.

For both short-term and long-term rental properties, items typically eligible for accelerated depreciation include (1) interior elements such as carpets, window treatments, and lighting fixtures, (2) exterior components including landscaping, parking lots, and signage, and (3) building systems like electrical wirings and plumbing.

Principal Cost Segregation Associates has a team of construction experts and tax specialists who work to create in-depth studies that adhere to IRS guidelines and stand up to

scrutiny. With their proven approach combined with deep industry insights and innovative strategies, the firm goes beyond surface-level analysis to provide clients with personalized solutions that bring them the most significant returns.

To learn more about Principal Cost Segregation Associates’ expanded service offerings and to book a consultation, please visit http://www.costsegassociates.com.

About Principal Cost Segregation Associates

Principal Cost Segregation Associates is a leading provider of cost segregation services, specializing in helping real estate investors maximize their tax savings through detailed property analysis and advanced depreciation strategies. With a focus on compliance and client satisfaction, the firm has successfully delivered substantial tax benefits to clients across a wide range of property types.

Media Contact
Company Name: Principal Cost Segregation Associates
Contact Person: Andrew Griffith
Contact Number: 205-558-8296
Email: team@costsegassociates.com
Country: United States
Website: http://www.costsegassociates.com/