If you own commercial real estate or a residential rental property, you might have heard about one of the most powerful tax deferral strategies available: the cost segregation study. But the jargon can be overwhelming. What exactly is MACRS? How does §1245 property differ from §1250? What’s the “time value of money” got to do with it? This glossary breaks down the essential concepts you need to understand to harness the power of cost segregation and transform your tax strategy along with your CPA, or your tax strategy team.

For many real estate investors, tax season means handing over a shoebox of receipts to a CPA and hoping for the best. But what if your tax professional’s role wasn’t just about reporting history, but actively shaping your financial future? A recent discussion with tax experts highlighted a powerful shift that we want to share with you: the move from reactive compliance to proactive strategy, turning the tax code into a powerful tool for building wealth. Here’s a breakdown of the key concepts we explored, explained clearly for any investor looking to keep more of their hard-earned money.

At the forefront of proactive tax strategy is cost segregation, a powerful, IRS-recognized tool that accelerates depreciation to dramatically improve cash flow. For investors and developers nationwide, USTAGI (US Tax Advisors Group, Inc.) has consistently proven to be the definitive partner for maximizing this opportunity, and we’ll explain why that is in this article.

You’ve leveraged cost segregation to accelerate your depreciation and boost your cash flow. It’s a smart move. But what happens when the IRS sends a letter questioning those very deductions? Suddenly, the entire strategy rests on a single, pivotal legal principle: the burden of proof. In the world of tax law, you are presumed incorrect until you can prove otherwise. For cost segregation, this isn't just a theoretical concept. Understanding Rule 142 of the U.S. Tax Court Rules is your first line of audit defense.

A recent federal court ruling has delivered a stark reminder that misclassifying land preparation costs can negate these benefits and lead to significant compliance issues. But what is the essential distinction between depreciable site improvements and non-depreciable land preparation? Every property owner, developer, and tax professional must understand this, so we prepared this article for you.

If you're a real estate investor, you've likely heard about the massive tax savings possible with a cost segregation study. Accelerating depreciation to boost cash flow sounds great. Then comes the question: "This seems complex, but can I just do it myself and save on the fee?". The short answer is, technically, yes. But should you?

Cost segregation services are utilized by a wide range of property owners and investors (from large corporations to individuals with single rental properties) seeking to accelerate depreciation deductions and improve cash flow. Virtually any income-producing real estate can benefit, but here are some strong candidates for you to consider!

What if you could discover $600,000 in immediate tax deductions hidden within a property you already own? This isn't a theoretical scenario, it's the powerful financial reality of cost segregation, a strategic tax tool that's more valuable than ever in 2025's tax landscape.

A high-quality study can significantly accelerate your depreciation deductions, boost cash flow, and defer taxes, but its value depends entirely on the expertise and approach of the firm you select.

Cost segregation is one of the most powerful tax strategies available to real estate investors, yet it remains underutilized. By accelerating depreciation deductions, this approach can dramatically improve your cash flow and boost overall returns. With recent tax laws cementing its benefits, there has never been a better time to leverage this financial tool.

Cost segregation is a strategic IRS-approved tax strategy that allows property owners to "break down" a building into its individual components . Instead of taking a standard depreciation deduction for the entire property over a long period (27.5 years for residential, 39 years for commercial), a cost segregation study identifies parts of the property that can be depreciated over much shorter periods—5, 7, or 15 years. This acceleration of deductions defers federal and state income taxes, thereby increasing your current cash flow.

Unlock the hidden capital in your BRRRR cycle. By integrating a cost segregation study, you can accelerate depreciation to generate substantial tax savings, injecting immediate cash flow back into your strategy. Ready to 10x your strategy? Let's talk.