Cost segregation is a reallocation of certain components in a real estate asset through engineering analysis.

For example, residential real estate can be depreciated over 27.5 years. Through cost segregation, items such as LVP flooring can be separated from the building and depreciated over a 5-year lifespan.

If you own a real estate investment property, cost segregation is likely beneficial for you. Below is a cost segregation calculator to help you determine the payback period for having a study performed.