Accelerate Deductions for Better Cash Flow With KBKG

Tax professionals often face residential cost segregation challenges when dividing expenses for multi-unit properties. If this struggle sounds familiar, you might be missing the necessary tools and resources for a successful real estate cost segregation allocation. KBKG streamlines and simplifies the process with our Residential Cost Segregator® software.

About the KBKG Residential Cost Segregator

CPAs and end-users can create custom reports in minutes with the Residential Cost Segregator® software specifically designed for small residential properties. You can potentially benefit from this residential cost segregation tool if you own or manage finances for a multi-unit property with up to six units. The building should have a depreciable tax basis (purchase price minus land) of no more than $1,200,000.

The program exports the report as a depreciation schedule in Microsoft Excel so you can easily import it into your financial software. You’ll submit this schedule when you file the annual tax return for the property.

When you complete a report from KBKG, you’ll have it in less than 15 minutes. You can access discounts for multiple credits while avoiding the expense of hiring a third-party cost segregation engineer.

Cost Segregation Study for Residential Rental Property

KBGB simplifies the process of the cost segregation analysis for real estate. Your customized report for a full-scope study will include a complete description of the property with relevant information that affects the residential cost segregation analysis. You can also create a detailed schedule of all the component costs sorted into the appropriate tax category.

If you missed out on taking advantage of completing a residential cost segregation for properties purchased in previous tax years, we can help. Our 481(a) Adjustment Calculator includes the federal and AMT 481(a) “missed deduction” calculation schedules so you can further reduce your tax burden and catch up on depreciation.

Importance of Cost Segregation in Real Estate

Building owners, CPAs, and tax preparers often use cost segregation as a strategic tax planning tool. You can defer federal and state income taxes and accelerate deductions for depreciation for residential real estate you have built, bought, renovated, or expanded. This strategy can increase business cash flow.

You will need a cost segregation report for a residential investment property to use this strategy for tax preparation. This document breaks down the property’s purchase price by each major component of the building. It indicates when these components will likely require replacement and allows you to take a retirement loss accordingly.

Cost segregation lets you take advantage of faster depreciation over five, seven, or fifteen years; otherwise, you would have to spread the related deductions under IRS rules for more than 27 years.

Completing a comprehensive cost segregation analysis reduces the risk of costly mistakes on your IRS return. 

Try Out the KBKG Residential Cost Segregator

Check out our preview calculator to see precisely how our Residential Cost Segregator® can take the stress out of your next cost segregation study for real estate. We also have a wealth of resources like video demos and sample reports. Register for your account today to revolutionize the process of cost segregation for residential real estate with KBKG.