Accelerate depreciation, reduce taxable income and increase cash flow with expert-led cost segregation strategies tailored to your real estate fund’s unique needs.
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SponsorCloud’s strategic cost segregation study reclassifies assets into shorter depreciation schedules (5, 7, or 15 years), accelerating deductions and boosting cash flow.
Identify building components eligible for shorter depreciation schedules to maximize tax benefits.
Leverage bonus depreciation and Section 179 to accelerate write-offs and improve cash flow.
Lower your tax burden early in the investment cycle, improving overall fund performance.
A clear cost basis for your asset facilitates calculating depreciation, accurately determining profits upon sale, and making informed investment decisions. It helps plan for a more tax-efficient exit strategy, maximizing profits when selling assets.
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Structure sales for maximum after-tax profits by understanding asset depreciation impact.
Maintain precise records that streamline audits and investor reporting.
Shield investors from taxable income while unlocking greater cash flow and long-term returns with SponsorCloud’s strategic cost segregation.
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Allocate depreciation benefits effectively to reduce taxable income.
Build strong tax reporting and documentation to prevent costly penalties and proIncrease cash flow availability for all your distributions.tect investor trust.
Provide tax-efficient investment structures that attract and retain investors.
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Optimize tax efficiency to enhance overall investment profitability.
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Use accelerated cash flow to scale and diversify your real estate portfolio.
Offer tax-advantaged investment opportunities to attract high-value investors.
A 4-step structured approach that turns tax complexity into predictable results.
A specialist reviews construction costs, blueprints, and asset details to identify components that can be depreciated faster than the standard 39- or 27.5-year schedule.
Items like flooring, lighting, cabinetry, and land improvements are reclassified into 5-, 7-, or 15-year categories for accelerated depreciation.
Our team creates and verifies your cap table proforma for approval, then prepares all tax documents with careful attention to depreciation calculations and adjustments.
Our team creates and verifies your cap table proforma for approval, then prepares all tax documents with careful attention to depreciation calculations and adjustments.
Let our team of experts inspire confidence in your lPs that crucial jobs are handled in a compliant and secure way.
Harisimran brings over 20 years of accounting experience to her role at SponsorCloud, 10 years specialized in real estate. She has also been a CFO in private equity and her expertise in financial strategy and tax compliance ensures that SponsorCloud's clients receive top-tier guidance in navigating the complexities of the real estate market.
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A Cost Segregation Study is an IRS-approved tax strategy that allows real estate sponsors, fund managers and investors to accelerate depreciation on certain property components. By reclassifying assets into shorter depreciation schedules (5, 7, or 15 years instead of 27.5 or 39 years), you can reduce taxable income, increase cash flow, and enhance investors’ after-tax IRR.
Most income-generating real estate properties qualify, including multifamily buildings, commercial properties, retail spaces, office buildings, industrial facilities, and hotels. Even renovations and tenant improvements may be eligible for accelerated depreciation benefits.
Yes! Even if you plan to sell, a Cost Segregation Study can provide immediate tax benefits. Plus, a clear cost basis calculation helps in capital gains tax planning and asset disposition strategies, reducing potential tax burdens at the time of sale.
Yes! A look-back Cost Segregation Study can be performed on properties acquired in previous years, often allowing investors to retroactively claim missed depreciation without amending prior tax returns. This can result in a significant one-time tax deduction.
At SponsorCloud, we outpace other CPAs and competitors by performing a cost segregation study within 2 business days. We also have the option for a more comprehensive cost segregation study that could take between 30-60 days.
Experience our demo and learn how SponsorCloud will enhance every aspect of your business
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