Real estate investors are paying thousands for 'cost segregation studies,' a tax strategy to increase cash flow. Here's how they work and who can benefit.
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- A 'cost seg study' can help investors accelerate depreciation deductions and, ultimately, boost cash flow.
- It involves having an engineer analyze the property's internal and external elements.
- They cost a few thousand dollars and don't make sense for everyone, but could save certain investors big money.
Owning rental property comes with significant tax advantages. So significant that, when used strategically, they can help investors scale solely through tax savings.