The Life Cycle Of Real Estate

It’s not a “one size fits all” approach.  We make it a point of understanding our clients’ needs – not just in the current year but throughout the ownership period.

Properties go through life cycles – whether it’s based on use, age or market conditions. Also, different groups within a client organization play distinct roles within the various phases of the life cycle.  It is not uncommon for these groups to be unaware of the value of tax-centric information.

Life cycle of real estate graphic

Here are just a few examples of how the information from our reports can be utilized.

Concept / Feasibility

Many sophisticated investors will want to gain a better understanding of how the depreciation  deductions will impact cash flow.  Source Advisors is routinely engaged by clients who wish to include our projections in the pro-forma packages.

Acquisition

It is usually best to have a Cost Segregation Study completed following acquisition in order to maximize depreciation deductions from day one, benchmark property for asset management purposes and for a better understanding of what was specifically included or excluded as part of the acquisition.  Also, in light of the Tangible Property Regulations, a comprehensive study will also properly document all assets that might be subject to disposition in the future.

Read More