Dynamic Duos

Throughout history, there have been numerous “Dynamic Duos”. Batman and Robin. Laurel and Hardy (for us oldsters). R2D2 and C3PO. John Wayne and anyone. And of course, the greatest dynamic duo of all times, peanut butter and jelly. But there is another Dynamic Duo that more real estate brokers are beginning to use that can accumulate more wealth for their clients…cost segregation and Section 453. Here is how the Dynamic Duo works. Depreciation is a huge opportunity when owning income-producing real estate. Depreciation can be used to shelter income from the operations of an income-producing property and can help minimize taxes. What if there was a way to increase depreciation which in turn would shelter more income and reduce taxes even more. That’s a good thing, right? Absolutely and that’s exactly what cost segregation does. So what is the first half of the Dynamic Duo, cost segregation? Cost segregation is an engineered based study approved by Congress on each of the assets in a real estate transaction. This could be a lighting fixture to wiring in a wall. Whenever possible, those assets can be depreciated faster which in return creates more depreciation which will shelter more income and reduce taxes and keeps more money in the property owners’ pocket. Click to read more at www.rednews.com.