Under U.S. tax laws, commercial real estate (CRE) is generally depreciable over a 39-year period, or 27.5 years for residential rental buildings. A professionally prepared cost segregation study dissects real property, such as a building, into multiple smaller parts and assigns a shorter recovery period to each separate component can enable investors to more quickly depreciate and recover the costs they incur when purchasing, constructing or renovating real property. In turn, this accelerated depreciation increases a property owner’s tax deductible expenses and helps them to better manage cash flow and the time-value of money during the period of ownership.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email firstname.lastname@example.org.