The CARES Act & Cost Segregation Analysis

Since its passage, there have been many articles on what is in the CARES Act. One of the features that is rarely mentioned is the changes that benefit owners of income producing real estate or business that own real estate. The Act now allows for a 5-year carryback of Net Income Losses arising in 2018, 2019, and 2020. This 5-year carryback requires individuals or companies to go back and roll forward from there.

When an engineering-based Cost Segregation study is applied, large depreciation deductions can be generated as compared to the traditional straight-line method. When a tax professional applies these calculations to the 2019 tax return, it can produce a tax refund and thus generate additional income.

To learn more how Cost Segregation Analysis can generate additional cash flow relating to investment property or a business, send an email to lewis@lzras.com or call 713-261-8655.