💸 Supercharge Your Real Estate Tax Savings in 2025 with Cost Segregation
- Tyler N
- Jun 25
- 2 min read
Published by Yadvisory.com – June 2025
If you're a real estate investor or business owner who owns commercial or rental property, you might be sitting on one of the most powerful tax-saving strategies available today — and not even know it.
It’s called cost segregation, and in 2025, it’s more valuable than ever, especially with the possibility of bonus depreciation getting a boost from Congress.
What Is Cost Segregation?
In short, cost segregation is a tax strategy that accelerates depreciation deductions by breaking out specific components of your building that can be written off over 5, 7, or 15 years — instead of the standard 27.5 or 39 years.
Think:
Carpet, cabinets, appliances
Landscaping, parking lots, lighting
HVAC systems, specialty plumbing
When paired with bonus depreciation, this strategy can produce massive first-year tax deductions — helping you boost cash flow, offset income, and reinvest sooner.
Why 2025 Is a Prime Time for Cost Seg
Here’s what’s making cost segregation a must-do in today’s environment:
Interest Rates Are Falling: Lower cost of capital means more acquisitions. A cost seg study helps improve after-tax ROI.
Bonus Depreciation May Return to 100%: Pending tax legislation could allow full expensing of qualifying assets, retroactively for 2023–2024.
New Builds & Renovations: If you completed a property improvement in the last few years, you may be eligible for a cost segregation study — and even amend past returns.
Audit-Proofing Is Key: With IRS enforcement ramping up, a professional cost segregation study is your best defense.
Who Should Be Thinking About Cost Segregation?
🏢 Commercial real estate owners (office, retail, warehouses)
🏘️ Multifamily developers with newly constructed or renovated properties
🛠️ Business owners who own their buildings (restaurants, medical offices, manufacturers)
🏨 Hospitality & hotel investors
Real-World Example
A client of Y Advisory recently completed a $4.2M multifamily project. With a cost segregation study, they were able to accelerate over $1.1M in first-year depreciation, slashing their tax bill and freeing up capital for their next development — all within 60 days.
Take Action Now
Cost segregation is legal, IRS-approved, and incredibly underutilized. But it’s also time-sensitive — the sooner you do it, the more you save.
📞 Let’s talk about your recent acquisition or improvement. Our team will help determine if a study makes sense — and unlock savings you didn’t know were possible.
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