Tax Benefits in Real Estate: Cost Segregation Insights

Rafael Ferrales, a managing director in Weaver’s fixed asset advisory practice, joins Howard Altshuler and Aaron Grisz on Weaver: Beyond the Numbers: Location Cubed to look into the intricacies of cost segregation in real estate and discuss its benefits for property owners and investors.

Key Points:

  • Utilize cost segregation for immediate tax savings on property investments
  • Employ an engineered approach for accurate tax classification of property components
  • Consider property hold periods to maximize cost segregation benefits

 

The discussion centers around cost segregation, a tax strategy that accelerates depreciation deductions, reduces taxable income, and enhances cash tax savings. Rafael brings insights from his engineering background and explains the significance of an engineered approach in accurately classifying property components for tax purposes. Rafael regularly consults with clients on tangible property capitalization issues and helps with the challenges and issues that arise in capital intensive industries.

“By accelerating those deductions, you reduce your taxable income, and you have cash tax savings. So, it’s a really basic cash tax savings play,” said Rafael. “But the methodology that goes into actually doing a cost seg—that’s where some of the magic happens.”

Subscribe and listen to future episodes of Weaver: Beyond the Numbers: Location Cubed on Apple Podcasts or Spotify.

Recent Episodes

career paths
View episode

In this episode of The Apple One Podcast’s Career Paths series, host Brett Howroyd speaks with Damon Polioudakis, a computational biologist dedicated to developing therapies for genetic diseases. Damon shares insights into the diverse roles within the science ecosystem, from lab work and data analysis to regulatory and business functions. He emphasizes that careers in…

status
View episode

In a world of rapidly advancing technology and global interconnectedness, the internet has reshaped how we view culture, art, and our own social identities. The rise of large language models (LLMs) and social media has made information and trends accessible in a way that some argue dulls originality and stifles creativity. This shift has…

creative expression
View episode

Creative expression is more than a trending concept; it fosters the resilience needed to navigate the unpredictable paths of success. The idea of ‘failing fast’ and learning from trial and error is essential. In a culture where instant gratification is prevalent, the research underscores the value of persistent effort. Studies show that individuals with…