Real Estate Developers:
Keep more of your money.
Offset Capital Gains will help you stop overpaying taxes to the IRS. Offset capital gains tax by accessing a powerful tax strategy that makes the most of your rentals.
You just sold a property.
You took the project from financing to construction,
and now you’re onto the next big thing.
But you’re not yet celebrating.
Because you don’t get to keep all of your profits.
Capital gains tax takes a substantial chunk out of your income.
Which mean you’re missing investment opportunities due to lack of capital.
Why shouldn’t you keep more of what you earn?
Who said you have to accept giving away almost half your profits with every sale?
Access powerful tax strategy that will give you back more of your earnings.
Boost your cash flow and pay less upfront tax –
without a heavy price tag.
Enter
We help you offset capital gains using your rentals as an advantage.
We help you claim accelerated depreciation on rentals in your portfolio, using a cost segregation study.
So that you can:
Pay less upfront taxes
Freed up capital
And seize more
investment opportunities.
Sounds good?
WWe help investors keep more of their profits on every sale
We identify rentals in your portfolio that are optimal for the best returns using accelerated depreciation and conduct a cost segregation study, working alongside your CPA throughout.
So if you:
Develop and sell real estate,
Hate losing sale profit to taxes.
Have rentals in your portfolio,
And are ready for a powerful tax strategy that will boost your cash flow,
We could be a fit.
Discover the power of cost segregation.
How
Smooth, straightforward, and strategic.
Here’s our 4-step process to maximizing your tax savings:
FAQs
Frequently Asked Questions
1. Can I only perform a cost segregation study in the year I purchased the property?
No!
You can conduct a cost segregation study on properties purchased in previous years. This allows you to capture missed depreciation by filing a Form 3115, which adjusts for past years without needing to amend prior tax returns.
2. What if the property I’m selling is in one LLC and my rentals are in another?
No problem!
Losses from one LLC can be used to offset gains in another LLC, as long as they flow through to the same taxpayer. This gives you the flexibility to use accelerated depreciation from rental properties to offset taxable gains from condo sales or other properties.
3. My CPA takes care of my taxes. Do I still need cost segregation?
Yes!
Most CPAs use the standard depreciation method, which works for typical rental income but won’t optimize tax savings for large tax events like condo sales. Cost segregation requires specialized expertise to accelerate deductions and offset significant capital gains effectively.
4. Won’t I have to pay depreciation recapture tax if I sell the property?
Yes, but there’s a strategy for that!
While depreciation recapture tax applies when you sell, strategies like using a 1031 exchange, offsetting gains with other losses, or carrying forward unused deductions can help minimize its impact. The upfront tax savings and improved cash flow from cost segregation often far outweigh the recapture tax.
5. Who benefits the most from cost segregation?
Cost segregation is ideal for:
• Real estate investors looking to increase cash flow.
• Developers facing tax events, such as condo sales.
• Business owners with income-producing properties wanting to reduce taxable income.
6. When is the best year to do a cost segregation study?
It depends on your needs!
The best year is the one where the tax benefits align with your financial goals. While many recommend doing it in the first year of ownership to maximize early deductions, it might be more strategic to conduct the study when facing a tax event—such as selling a property or realizing significant capital gains—to offset those taxes effectively.
7. Is cost segregation better than a 1031 exchange?
Not necessarily!
Cost segregation is not a replacement for a 1031 exchange but can be used alongside it or as an alternative when a 1031 is not feasible. Together, these strategies can provide significant tax advantages depending on your situation.
8. What types of properties are eligible for cost segregation?
Any income-producing properties, including:
• Office buildings
• Retail spaces
• Apartments
• Warehouses
• Restaurants
• Hotels
If your property generates income, it’s likely a great candidate for cost segregation!
We could be a fit.