Richard is joined by show sponsors Joel Gruskin and Curt Gautreau of Cost Segregation Initiatives (CSI) to discuss what cost segregation is and how new changes in the tax code have made it beneficial to real estate investors, especially investors in used properties.
Joel Grushkin, the San Diego Regional Director of Cost Segregation Initiatives (CSI), and Company President, Curt Gautreau. Cost segregation is an IRS sanctioned procedure of re-classifying the improvements and components of commercial buildings in order to increase cash flow and reduce income tax liability. Put simply cost segregation breaks down the groups of elements in a building to depreciate them at an accelerated to rate to increase the cash flow for property owners and maximize cash from real estate investments. CSI performs this service for owners of several different types of commercial properties such as, but not limited to, medical facilities, shopping centers, hotels, and automotive dealerships.
New changes in the tax code have changed the rules to the benefit of real estate investors. CSI can help real estate investors take advantage of these new changes in the code which their CPAs may not be aware of.
Curt Gautreau, as Chair of the Technical Standards Committee of the American Society of Cost Segregation Professionals, works with the IRS to ensure that their recommendation falls into the IRS rules.