The Role of Cost Segregation Studies in Strategic Tax Planning

Cost segregation study plays a crucial role in strategic tax planning by allowing property owners to accelerate depreciation deductions on their assets. By identifying and classifying components of a property into shorter recovery periods, a cost segregation study can significantly reduce taxable income and improve cash flow. This tax strategy enables businesses to reinvest savings into growth initiatives, ultimately enhancing overall financial performance. As such, incorporating cost segregation studies can be a valuable tool for maximizing tax benefits.