Cost segregation can seem complex, which has led to a few persistent myths. Let's clear them up.
1. "It's only for big commercial buildings."
False. While it's true that large properties have always benefited, technology has made it cost-effective for smaller properties. Our proprietary platform was specifically designed to bring this tax strategy to owners of residential rentals.
2. "It's too expensive."
Not anymore. A traditional study can cost thousands. We provide a comprehensive, IRS-compliant report for a fraction of the cost, making the return on investment incredibly high for most investors.
3. "It's too complicated for me to do."
We make it simple. You don't need to be a tax expert. Our platform provides a guided, step-by-step process that tells you exactly what information to provide and what photos to take. We handle all the complex analysis.
4. "It increases my audit risk."
False. Cost segregation is a well-established, IRS-recognized tax strategy. When done correctly and based on the IRS's own guidelines (like our reports are), it does not increase your audit risk. It simply utilizes the tax code as intended.
5. "It's just moving deductions around."
True, but that's the point! The time value of money is a fundamental principle of finance. A dollar in tax savings today is worth more than a dollar saved 10 years from now. By accelerating deductions, you get more cash in your pocket sooner, which you can use to your advantage.