Layne Cost Segregation

Cost segregation is a uniquely powerful tool that boosts your returns by reducing your tax liability. When performed within the bounds of the IRS's Audit Technique Guide, it becomes an audit-proof, tax savings generator. Imagine how your investment portfolio could grow if you could keep those tax dollars in your pocket. The idea is simple - investments in real estate are made up of appreciating assets and depreciating assets. Taxpayers are allowed to claim deductions from their taxable income in the amount of the paper loss created by depreciation. The question is, how much of the investment is depreciable, and are you taking full advantage of that loss? To do so requires you to distinguish the costs of personal property (flooring, cabinetry, etc.) from the cost of the building's structure. Through a cost segregation study, we identify the total costs allocable to all building components and land improvements and then recategorize them by asset class and useful life. This results in massive tax deductions for the first 1-3 years of owning that property by frontloading a large portion of the total allowable deductions you may claim.